Economy

Sensex zooms 600 points in highest single-day gain in 2 years

Our Bureau Mumbai | Updated on March 07, 2011

markets



In a dramatic post-Budget rally, the Sensex skyrocketed more than 600 points on Tuesday, marking its biggest single day gain in almost two years.

Strong export figures, auto sales numbers as well as global cues gave a fillip to the equity market, already buoyed by the Budget announcements.

The Sensex closed near the day's high at 18,446.5; up 623 points, or 2.5 per cent, from its previous close. The broader Nifty was up 3.5 per cent at 5,522 points.

Such a surge was last seen on the day the UPA Government was re-elected, in May 2009; then, the Sensex had zoomed more than 2,000 points.

“The Budget announcement was the major trigger for the market and it brought in huge short covering. The Budget was centred on investment in infrastructure, agriculture, education and financial sectors. Crude oil prices too have eased a bit,” said Mr Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services.

Global markets were positive as crude oil prices softened. The Dow was up on Monday, while on Tuesday the Hang Seng, Nikkei, CAC, DAX and FTSE were all in the black.

“A marginally positive Budget, impressive monthly auto sales figures coupled with upbeat economic reports boosted the sentiment on Tuesday,” said Mr Amar Ambani, Head of Research (India Private Clients) at India Infoline.

It was not just the benchmark indices which surged on Tuesday, but the BSE Midcap and Smallcap indices too ended the day up 3.2 per cent and 2.3 per cent respectively. All the sectoral indices on the BSE closed in the black. BSE Auto was up 5.64 per cent; Bankex 4.35 per cent and Realty 4.2 per cent, being the biggest gainers.

Foreign institutional investors were net buyers for Rs 418 crore on Tuesday. Domestic institutions were net buyers for Rs 95 crore. With the markets on the rise, retail investors booked profits as they were net sellers for Rs 175 crore on the BSE.

The market breadth on the BSE was positive with 2,128 scrips advancing and 759 declining. All the Sensex scrips ended the day with gains. Mahindra and Mahindra, Maruti Suzuki and Jaiprakash Associates gained the most. They surged between 7.1 per cent and 8.36 per cent.

Published on March 01, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor