Markets zoom over 2.5% as global stocks advance

MUMBAI: Benchmark indices Sensex and Nifty on Tuesday spurted by more than 2.5% to log their best single-day gains in three months, propelled by heavy buying in metal, energy and banking stocks amid a global rally in stocks.

The 30-share BSE benchmark zoomed 1,344.63 points or 2.54% to settle at over one-week high of 54,318.47 points with all of its constituents closing with gains. During the day, it jumped 1,425.58 points or 2.69% to 54,399.42.

The broader NSE Nifty rallied 417 points or 2.63% to finish at 16,259.30 points. All the 50 stocks advanced led by steel and energy stocks.

Both Sensex and Nifty notched their best single-day gain since February 15.

“A ferocious up-move from the metal index lifted Reliance together with other sectoral indices, leaving bears gasping and covering short positions and looking out for reasons for the rally,” according to S. Ranganathan, head of research at LKP Securities.

On a day when WPI for April crossed 15%, a more than 2.5% rise in benchmark indices coupled with the breadth of the rally surprised many on the street despite the move coming after a relentless fall, Ranganathan said.

Among Sensex stocks, Tata Steel emerged as lead gainer, rising by 7.62%.

The most valuable company Reliance zoomed 4.26%, helping the Sensex to close at over oneweek high.

Infosys, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies, Bajaj Finance, SBI and Maruti added to the rally.

“After a long gap, the market has witnessed resilience supported by heavyweights and broader markets. The market was trading at oversold territory and was inspired by optimism in the Asian markets,” said Vinod Nair, head of research at Geojit Financial Services..