As the bulls turned quite aggressive, stocks rallied sharply past noon and the Sensex zoomed to 18,866.87, recording a huge gain of nearly 520 points. The Nifty spurted to 5720, notching up a gain of over 160 points.
Though a few stocks have come off their highs subsequently following a mild bout of profit taking, the Sensex and Nifty still remain fairly high up in positive territory with whopping gains.
At 18,739.44, the Sensex is now up 390.19 points or 2.13% from its previous closing mark. The Nifty is up 132 points or 2.38% at 5686.25.
The surge is on the back of the government's decision to go ahead and allow FDI in retail, aviation, broadcasting and power sectors, despite countrywide protests against the move. The government has even shrugged off the imminent withdrawl of key allies, determined to pursue its reforms agenda.
Power stocks are on song. Bank, capital goods, metal, infrastructure and aviation stocks are in demand. Realty, PSU, oil, FMCG and automobile stocks are up sharply as well, even as stocks from consumer durables, healthcare and information technology show signs of some weakness.
BHEL has gained nearly 7% on strong buying at the counter. Tata Power has gained over 5%. ICICI Bank, Sterlite Industries, State Bank of India, Bharti Airtel, Larsen & Toubro, Mahindra & Mahindra and Tata Steel are up 3% - 5%.
Hindalco, HDFC Bank, HDFC, ONGC, Coal India, ITC, NTPC and Maruti Suzuki are all trading higher by 2% - 3%. GAIL India, Reliance Industries, Wipro, Hero Motocorp, Jindal Steel and Bajaj Auto are also trading notably higher.
Retail stocks Pantaloon Retail, Provogue, Koutons Retail, Shoppers Stop and Brandhouse Retail moved up sharply following the government implementing its decision to allow FDI in multi-brand retail sector. Under the notification relating to FDI in multi-brand retail, multinational companies can invest up to 51% to open stores in 10 states and UTs, which have so far agreed to implement the government decision.