Mumbai: US Federal Reserve's surprise move to keep its easy money policy intact was lustily cheered by Indian markets, where stocks rallied to multi-month highs on the back of frantic buying Thursday.
The 50-share Nifty galloped by a stunning 216.10 points, or 3.66 percent, to finish at 6,115.55 on the National Stock Exchange (NSE). The barometer hit a high of 6,142.50 in early trade.
The US central bank yesterday decided to continue with its USD 85 billion-a-month bond buying programme following growing softness in the world's largest economy. The US Fed was widely expected to scale down the economic stimulus, which has led to flow of funds in emerging markets, including India.
Financial stocks spearheaded the rally, though all sectoral indices ended with massive gains as confidence ruled high on the eve of the RBI monetary policy.
Swayed by the overnight developments and record closing at Wall Street, trading began on a strong footing at NSE as domestic investors joined the global party with frenzied across-the-board buying.
The buoyancy was maintained throughout the day and the Nifty ended above 6,100, a level not seen for many months.
Rally was also seen in other bourses in Asia, which had suffered following exodus of funds from emerging markets on fears of Fed tapering its stimulus programme.
The momentum ignited by the Fed is likely to continue for some more time, traders said.
PNB, Bank of Baroda, JP Associates, Kotak Bank, SBIN, IDFC, Asian Paints, Tata Steel, Grasim and DLF were the smart gainers from the Nifty pack.
Turnover in the cash segment shot up to Rs 18,129.68 crore from 8,692.33 crore yesterday. A total of 8,612.14 lakh shares changed hands in 77,38,518 trades. The market capitalisation stood at Rs 64,60,703 crore.
First Published: Thursday, September 19, 2013, 22:09