The markets, which began the week with handsome gains, continued their upward journey for the second consecutive trading session on Monday. The bourses extended gains on favourable global cues, especially from China, which announced a massive $ 586 billion package to give a fillip to its sagging economy.
The 30-share Sensex of the Bombay Stock Exchange (BSE) advanced 571.87 points or 5.74% to close the day at 10,536.16 points. Market dealers also said Taiwan?s move to cut interest rates by 25 bps for the fourth time in two months also lifted sentiment.
The S&P CNX Nifty of the National Stock Exchange (NSE) gained 175.25 points or 5.9%, to end the day at 3,148.25 points. Deven Choksey, MD of K R Choksey Securities, said, ?China?s stimulus package boosted emotions in the markets. Apart from that, the world is pinning hopes on US president-elect Barack Obama to battle the financial meltdown efficiently.?
He added, ?There was genuine buying during start of the day and short-covering was witnessed during the last trading hour. This helped the markets end the day on positive terrain.?
All the sectors on the BSE ended the day in green, with the metals index surging to close 10% higher. Besides, power, consumer goods and oil and gas were among the top gainers of the day.
?After China declared a stimulus package, we assume that it will increase the demand for metals including steel, copper and zinc because the country said it will spend a whopping amount on infrastructure,? said an analyst from a leading broking house.
Overall, the markets breadth was positive, as out of 2,622 shares traded on the BSE, 1,694 stocks advanced, 855 declined, while 73 remained unchanged. In the Sensex stocks, 28 ended the day in green, while two ended in red.