The benchmark Sensex surged by over 286 points on Monday on emergence of buying by funds in heavyweight stocks, triggered by a firming global trend.
The Sensex, which had been on a downward march since last few trading sessions, bounced back to record a hefty gain of 286.03 points at 14,427.55 points, after surging over 550 points during the day.
The National Stock Exchange’s Nifty shot up by 101 points to close at 4209.05, after touching the day’s high of 4,262.60 points.
The market regained strength as most of the global markets recorded handsome gains after the US Federal Reserve unexpectedly cut the rate at which it lends to banks by half a percentage point, easing concern about a widening credit crisis.
The Asian markets opened strong and European markets were trading higher, both influencing the bourses here.
“The financial markets seemed to be controlled temporarily and brought some relief to the stock markets,” said Mumbai-based broker Ratnesh Gupta.
The major support to the current firm trend came in from sectors like metal, banks, capital goods and oil and gas, which closed with significant gains.
However, information technology stocks remained weak on fears the volatile dollar in the forex market might effect the earnings of these companies as over 50 per cent of revenue comes from the US markets.