Positive global cues spurred a rally in the domestic equity bourses, taking the Sensex to its highest-ever single-day gain of 893.58 points, or 4.69%, to close at 19,929.06 points on Wednesday. November Sensex futures closed at 20,000 points, at a premium of 70.94 points. The S&P CNX Nifty of the National Stock Exchange (NSE) rose 242.5 points, or 4.26%, to end at 5,937.90 points. Nifty November futures closed at a premium of 21.5 points at 5,959.4 points.
Market experts opine that the sentiment improved over the US credit market turmoil when the Dow Jones Industrial Average surged higher overnight by 319.54 points, or 2.46%, at 13,307.09 points after top executives of Goldman Sachs reassured investors that it did not face big challenges from US credit market crisis, easing concerns of investors across the globe. Following this, Asian markets were in an upbeat mood with Nikkei 225 closing at 15,499.56 points, gaining 372.93 points, or 2.47%, thus bouncing back from its 15-month low. The rest of the Asian markets surged higher in the range of 1-5% with Hang Seng surging by 1,362.66 points, or 4.90%, at 29,166.01 points while the Shanghai Composite rose by 254.58 points, or 4.94%, to end at 5,412.69 points.
?On Wednesday markets were largely driven by positive global cues. The market had technically corrected over the last 10 days. Whatever short positions remaining were largely covered and fresh long positions have been created. With political comfort emerging at the Centre, the dollar, waiting in the fence, had taken the opportunity to buy,? says Deven Choksy, managing director of KR Choksy Securities.
All BSE sectoral indices closed higher with BSE Bankex rising by 687.77 points, or 6.53%, at 11,225.82 points while BSE Oil & Gas surged by 729.94 points, or 6.40%, at 12,138.87 points. All Sensex constituents ended the day on a high note.
?The kind of buying that has come into these large-cap stocks shows that large fund buying has started in the Indian market,? adds Choksy. According to per the provisional figures released by the stock exchanges (SEs), foreign institutional investors (FIIs) were net buyers worth Rs 163.02 crore while domestic institutional investors (DII) bought shares worth Rs 567.04 crore.
On Wednesday, it was not only the large-cap stocks that had actively participated, but also the mid and small cap stocks that resulted in a robust market breadth. In BSE a total of 2024 stocks advanced when compared to 764 stocks that had declined.