Sensex shot up 421 points to 15936

Mumbai: The BSE Sensex shot up 421 points to 15,939.36 on renewed buying triggered by positives such as RBI indicating that it may start lowering lending rates and the government allowing foreign individuals to directly buy Indian stocks equities, amid firm global markets.

The strong rally added more than Rs 1.5 lakh crore to the investors` wealth, led by strong gains in top BSE 30-scrip Sensex heavyweights such as ICICI Bank, Reliance Industries and Infosys. All the 13 sectoral indices ended with gains, led by metals, capital goods, banking and realty stocks. Firm trends in global markets after holiday mood also boosted the sentiment.

Analysts said RBI Governor`s comments that the central bank is looking at easing its lending rates on concerns about economic growth, and the government`s decision to allow Qualified Foreign Investors to buy Indian stocks directly from January 15 strengthened the market sentiment.

"Fuelling the rally in the market was expectation that RBI may cut interest rates this time, and corporate India may deliver good Q3 results. Moreover, Asian markets and European market also saw gains," said Parag Doctor, Associate VP at Motilal Oswal Securities.

Overall, 28 of the 30 Sensex scrips registered gains, while only M&M and Hero MoroCorp closed with losses. Top four bluechips – RIL, Infosys Tech, ICICI Bank and L&T – together added almost 150 points to the Sensex gains. The benchmark opened strong on firm Asian cues and gained further to close the day at 15,939.36, up 421.44 or 2.72 per cent. Yesterday, it had gained 63 points or 0.41 per cent.

The 50-scrip NSE index Nifty also spurted 128.55 points or 2.77 per cent to one-week high of 4,765.30. Other major contributers were HDFC Bank, SBI, Tata Motor, HDFC Ltd, Bharti Airtel, Tata Steel, TCS, BHEL, ITC, Coal India, Wipro, ONGC and Tata power. Asian stocks gained on reports of manufacturing growth in the region, including India. Key indices in Hong Kong, Taiwan, Singapore and South Korea gained up to 2.69 per cent. Stock markets in China and Japan were closed.

European markets, except France, were up in the afternoon deals by well over a per cent. Top gainers from the Sensex pack were Tata Steel (6.06 per cent), followed by Jindal Steel (5.67 pc), Coal India (4.84 pc), Sterlite (4.48 pc), Hindalco (2.85 pc), L&T (5.04 pc), BHEL (4.86 pc), SBI (4.72 pc), ICICI Bank (4.16 pc), HDFC Bank (2.80 pc), HDFC (2.10 pc), DLF (6.84 pc), Jaiprakash (3.61 pc), RIL (2.37 pc), ONGC (1.78 pc), Wipro (4.59 pc), Infosys (2.13 pc), TCS (1.57 pc), Bharti Airtel (3.78 pc), Tata Motors (5.50 pc), Maruti Suzuki (1.49 pc), Bajaj Auto (1.47 pc), Tata Power (5.16 pc), NTPC (1.33 pc), HUL (1.32 pct), Cipla (2.04 pc) and Sun Pharma (1.27 pc).

From the sectoral indices, BSE-Metal flared up 5.05 pc, Capital Goods – 4.40 pc, Bankex – 4.35 pc, Realty – 4.28 pc, PSU – 3.78 pc and Power – 3.11 pc. The total market breadth on the BSE was strong as 2,019 counters closed in the green, while only 740 ended in the red. The market turnover turned higher, after remaining low for last few days, at Rs 1,850.45 crore.