Rallying for the fourth straight session, the Sensex surged 724 points on Thursday to close above the 41,000-mark on across-the-board buying amid a strong trend in the global markets despite uncertainty over the US poll outcome.

After a strong start, the 30-share BSE index maintained its upward trajectory throughout the session to close at 41,340.16, up 724.02 points or 1.78 per cent.

Similarly, the broader NSE Nifty zoomed 211.80 points or 1.78 per cent to finish at 12,120.30.

All Sensex components closed in the green.

SBI was the top gainer, soaring over 5 per cent, followed by Tata Steel, IndusInd Bank, Bajaj Finance, Bajaj Finserv and HCL Tech.

Elsewhere in Asia, bourses in Hong Kong, Shanghai, Seoul and Tokyo ended with significant gains.

Stock exchanges in Europe were also trading on a positive note in early deals.

In the forex market, the rupee zoomed 40 paise to close at 74.36 against the US dollar.

Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 146.22 crore on a net basis on Wednesday, according to provisional exchange data.

According to Arjun Yash Mahajan, Head Institutional Business at Reliance Securities, Wall Street rebounded sharply for the third consecutive day despite the outcome of the presidential election looking to be too close.

“Looking at market reactions, it appears that investors seem to be cheering about the possibility of a divided USA government as political gridlock might not lead to increase in corporate tax rates,” he said.

India’s trade set up looks to be strong as of now mainly on global cues, he said, adding that volatility in the market may continue to persist.

Democratic presidential candidate Joe Biden and his running mate Senator Kamala Harris of Indian origin, inched closer to the magic figure of 270 Electoral College votes, even as incumbent Republican President Donald Trump moved ahead with his plan to mount a massive legal battle.

 

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