New Delhi: Indian markets closed on a spectacular note on Thursday. The BSE Sensex and Nifty surged nearly 2 percent on Thursday, on hopes foreign buying would continue as country can better weather any Fed-related volatility due to improving fundamentals. Fresh buying and hopes of stronger Indo-China economic ties also boosted the sentiment.
The BSE Sensex today zoomed about 481 points to end at 27,112.21, while the broader NSE Nifty soared over 139 points to close at 8,114.75. This is their biggest single-day gain since June 2.
The 30-share Sensex after opening in the negative zone rebounded to regain the psychological 27,000-mark for the first time since September 11 to trade 446 points, or 1.68 per cent, higher at 27,077.65.
All sectoral indices led by realty, consumer durables and capital goods ended in the positive territory with gains up to 4.26 percent.
Prominent gainers on the BSE were Unitech Ltd. (+ 12.85 %), Indian Hotels Co (+ 9.72 %), HDIL (+ 9.24 %), Adani Power Ltd. (+ 7.62 %) and Ashok Leyland (+ 5.80 %). The losers' list included Britannia Ind. (-2.09 %), Bhushan Steel Ltd. (-1.62 %), Pipavav Defence & Of (-1.32 %), Infosys (-1.20 %) and Guj. Mineral Dev (-1.07 %)
Today, India and China signed a trade pact during Chinese President Xi Jinping's ongoing visit to India. Experts view this as a new chapter in the India-China relationship.
Brokers said sentiments bolstered on optimism that trade ties with China would attract foreign inflows and revive country's economic growth, triggering a flurry of buying by participants, helping the Sensex to regain 27,000-mark.
Meanwhile, China plans to invest around USD 500 billion overseas in the next five years, a large share of which is expected to find India's way.
Earlier, the US Federal Reserve has reduced its asset purchase program from $25 billion per month to $15 billion per month. It has also noted that the QE3 is likely to be terminated next month, if outlook remains conducive.
The US central bank did not give any clarity on the timing of a possible interest rate hike. It is expected low interest rates could be maintained for a considerable time even after assets purchases end.
