After a shaky start and a subsequent weak spell, the market staged a smart rally this afternoon thanks to a firm trend on the Asian and European bourses and signed off on a firm note. Bargain hunting after a series of setbacks and short-covering ahead of expiry of near month contracts too aided the surge.
Investors in Asian and European markets picked up stocks amid hopes the U.S. Federal Reserve would spell out some relief measures to boost the sagging U.S. economy. Some encouraging economic data from China too contributed to the positive mood in global markets.
After a positive start, the market faltered amid high volatility this morning. However, after moving in a choppy fashion for close to three hours, it started climbing up, led by gains in the information technology space.
The Sensex, which tumbled to around 16,213 after opening at 16,446.85, ended the day at 16,498.47 with a strong gain of 156.77 points or 0.96%. The National Stock Exchange's benchmark Nifty closed at 4948.90, recording a gain of 50.10 points or 1.02%.
Information technology stock had a pretty good outing. Mirroring their surge, the BSE IT index ended nearly 4% up. BSE Teck moved up by about 3.2%. Capital goods, consumer durables and bank stocks were among the other notable gainers.
Metal and power stocks found good support. A few stocks from the automobile space posted gains. Realty, FMCG, pharma and oil stocks were mostly subdued. Midcap and smallcap stocks moved higher, shrugging off an early setback.
Tata Consultancy Services spurted 6.7%. Infosys ended with a gain of 3.65%, while Wipro, the other IT stock in the Sensex, closed with a marginal gain.
Bajaj Auto moved up by 4.3%. BHEL notched up a gain of 2.65%. Bharti Airtel, Larsen & Toubro, Hindustan Unilever, Tata Steel, Reliance Industries, Hindalco, HDFC Bank, Sun Pharmaceuticals and Jindal Steel also closed on a firm note.
Rashtriya Chemicals & Fertilizers, Adani Power, Jain Irrigation Systems, Apollo Tyres, Aurobindo Pharma, Yes Bank, Financial Technologies, Cadila Healthcare, Patni Computer Systems, Petronet LNG, Bank of India and National Fertilizers closed with impressive gains.
The market breadth was fairly strong. Out of 2918 stocks traded on BSE, 1824 stocks moved up. 988 stocks declined and 106 stocks ended flat.