Positive cues from global markets coupled with some short-covering at lower levels enabled the markets to bounce back on Thursday. The 30-share Sensex of the Bombay Stock Exchange (BSE) surged 375.19 points or 2.21% to close at 17,353.54 points while the broader Nifty of the National Stock Exchange (NSE) closed at 5,115.25 points posting a gain of 103.50 points or 2.07%.
The depreciating rupee against the dollar gave some fillip to the shares of export-driven software services and textile exporting companies that earn more than half of their revenue from the United States, dealers said. Among sectoral indices, baring BSE FMCG, which succumbed to profit-booking at higher levels, all other indices ended the day in positive terrain with BSE Capital Goods (CG) and BSE Realty leading the way, surging by around 3.4% each.
BSE Oil & Gas stocks, which saw some grim trading scenes in the past few sessions, also joined the rally on Thursday. Dealers said expectations for tax breaks for exploration, as global oil prices remained near record highs, lifted energy stocks helping the BSE Oil & Gas to surge by around 2.65%.
Overall participation across the board helped more stocks surge with around 1,772 stocks rising against fall by 909, while 74 remained unchanged at the BSE. Foreign institutional investors were net buyers at Rs706.88 crore on Thursday while domestic institutional investors were also net buyers to the tune of Rs 363.11 crore.