Mumbai: Investor wealth surged by over Rs 2.69 lakh crore in three days, with the Sensex gaining over 1,100 points, on expectations of further economic reforms in the third year of the Modi government.
The 30-share index ended the day at 26,366.68, a sharp rally of 485.51 points or 1.88 per cent -- nearly a 7-month high. In three trading sessions, the index has gained 1,136.32 points.
Consequently, the market capitalisation of BSE-listed companies surged Rs 2,69,402 crore to Rs 98,11,322 crore.
"Earnings growth will be the major driver of market going forward. Earnings growth has been subdued for the last 3 years and is now expected to revive in FY17. The Modi government has completed 2 years too, laying a strong structural foundation for future economic expansion. This will help the market to grow at a strong rate over the next 5 years," said Motilal Oswal, CMD, Motilal Oswal Financial Services.
After a strong performance by the BJP in recently-held Assam assembly elections, expectations have grown that the growing political comfort for the ruling party would help expedite various economic reforms by the NDA government in its third year.
The 50-share NSE Nifty ended at 8,069.65, a hefty gain of 134.75 points, or 1.70 per cent.
"Improved fourth quarter earnings of index heavyweights provided the essential fire to the rally," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd.
As many as 22 scrips out of 30-share Sensex pack ended higher.
At BSE, 1,385 stocks advanced, while 1,176 declined. 186 stocks remained unchanged.