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Benchmark index surges by over 700 points

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, surged by more than 700 points on Monday ahead of general election results, recording the biggest one-day gain of the year. Global markets too supported the domestic rally with smart gains.

“Markets have broken out very strongly. This was not expected in view of election uncertainties. The buzz is that large ‘long-only’ funds have made purchases in many Asian markets. Traders should be cautious as we approach 3800 on Nifty,” said Sunil Shah, Managing Director, Evergreen Capital Advisors. However, he said the markets might continue to rally if there was an unexpectedly positive outcome on May 16.

The benchmark BSE 30-share Sensex spurted by 731.50 points or 6.41 per cent to close at 12134.75. A broader 50-share National Stock Exchange index Nifty zoomed 180.05 points, or 5.18 per cent, to close at 3654.

Taking cues from a strong trend witnessed in global indices, the Sensex ended last week (last Wednesday, April 29) at 11403.25, a gain of 0.65 per cent as compared to the previous week’s close. Foreign institutional investors (FIIs) were net buyers in equities to the tune of Rs. 2,180 crore as on April 29, while mutual funds sold to the extent of Rs. 400 crore upto April 28.

Market rally was led by metal (8.77 per cent), information technology (8.40 per cent), bank (7.89 per cent) and consumer goods (5.88 per cent) stocks. Realty sector took the back seat with a gain of 4.96 per cent. Another economy-driven sector, automobiles, gained 4.62 per cent.

PTI reports:

In tandem with the sharp rally in equity markets, the rupee on Monday ended up by another 11 paise to a one-week high of 49.92/94 against 50.04/05, despite late dollar demand. The weakness in the dollar overseas against its major rivals also helped the rupee rise.

In active trading at the interbank foreign exchange market, the domestic currency resumed sharply higher at 49.57/59 from its previous close of 50.04/05.

It initially touched a high of 49.55 on firm Asian equity markets, including India.

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