Sensex at 7-month high; surges 731 pts

Courtesy : Financial Express

The Bombay Stock Exchange benchmark Sensex on Monday surged to touch a seven-month high, recording the biggest one-day gain of the year, as strong risk appetite on a brighter outlook for the global economy lifted markets across the globe.

The Sensex spurted by 731.50 points, the largest single-day gain this year, to 12,134.75, a level never seen after October 3 last year. Monday's 6.41 per cent surge took the Sensex over 50 per cent above the 2009 low in early March.

In a similar fashion, the 50-share National Stock Exchange index zoomed by 180.05 points, or 5.18 per cent, to 3,654.00. It regained 3,600 level after October last year.

The current rally was mostly attributed to a sharp upsurge in stocks of metal, information technologies and banking.

Trading sentiment got a boost after stocks in Europe and Asia rose, US futures advanced and the yen weakened as a report showing China’s manufacturing expanded for the first time in nine months is seen among the signs that the global recession is easing.

Europe’s Dow Jones Stoxx 600 Index climbed 0.7 per cent and Standard and Poor¿s 500 Index futures 0.6 per cent on reports that the CLSA China Purchasing Managers’ Index rose in April on decline in export orders moderating, and government stimulus spending.

The MSCI Emerging Markets Index of 23 developing economies climbed 3.7 per cent to 687.47, the highest since October 6, Russia’s Micex by 3 per cent, and Taiwan¿s Taeix index by 5.6 per cent.

Marketmen said the upsurge in the stock markets was partly supported by foreign funds, which remained net buyers in the Indian stock markets, bringing back confidence among retail investors.

They said the foreign investors bought stocks worth 1.3 billion dollars in April, the most since October 2007.

The metal index gained the most, rising 8.77 per cent to 7,489.47, following a steep rise in stocks of Sterlite Industries and Tata Steel. All the 15 participants of the sectoral index were significantly higher.

The information technology sector index was the second-best performer, adding 8.40 per cent to 2,887.04, followed by the banking index, which was up 7.89 per cent to 6,133.53. The capital goods index rose 5.88 per cent to 8,374.17.

The tech index rose 5.86 per cent to 2,289.78, FMCG 5.43 per cent to 2,208.74, realty 4.96 per cent to 2,236.09, auto 4.62 per cent to 3,659.73, consumer durables 4.23 per cent to 1,831.97, oil and gas 3.87 per cent to 8,447.48, power 3.31...