Mumbai: Buoyed by nearly 6 percent jump in Reliance Industries, Sensex Monday rose 215 points to record its highest close since July 11 amid new Finance Minister P Chidambaram promising fine-tuning of policies and corrective steps to put in place a stable and non-adversarial tax regime.
The BSE benchmark index shot up by 215.03 points, or 1.25 percent to end at 17,412.96, its highest closing in four weeks, as foreign funds flowed in helping the bluechip index snap a two-day downtrend when it lost 60 points.
The 50-share National Stock Exchange index Nifty shot up by 66.85 points, or 1.28 percent to 5,282.55.
Sensex' rise was led by RIL, which notched up its best daily gain in 3 years, ahead of a meeting of an oversight panel to consider clearing annual investment plans for KG-D6.
Investors were also enthused by Chidambaram's comments that were made before markets closed, said traders. Unveiling a broad roadmap to regain investor confidence, he also said the government will work with RBI to moderate inflation.
"...Sometimes it is necessary to take carefully calibrated risks in order to stimulate investment and to ease the burden on consumers," Chidambaram said.
Private banks, including HDFC bank and ICICI Bank, rose in the 1.5-2 percent range today, helping Sensex extend gains.
Metal and auto stocks were among the 21 stocks in Sensex that ended with gains. Investor wealth across the market rose by nearly Rs 48,000 crore as nearly 1,676 scrips gained.
However, pharma scrips like Dr Reddys and Sun Pharma, and FMCG stocks including ITC and HUL finished with losses as investors moved money out of defensive sectors, said dealers.
Brokers also said trading mood improved on global cues influenced by higher-than-forecast US jobs data at 163,000 for July that came out after Indian markets closed on Friday.
"The undercurrent across Asian markets was buoyed by Friday's strong gains on Wall Street and the European markets," said Amar Ambani, Head of Research, IIFL.
Indices in China, Hong Kong, Singapore and South Korea ended up between 0.67 percent and 2.01 percent. From Europe, key indices from France, Germany and the UK were also up.
Analysts said reports that benchmark Singapore gross refining margins (GRM) have recently strengthened also supported the surge in RIL's share value.
"The markets might hold on to the optimism for some time as there as hopes that the government may push certain reform measures post the Vice-Presidential polls on August 7. All eyes would be on data to be announced on Tuesday such as the UK Industrial Production, Germany factory orders and Japan Current Account Data," said brokerage GEPL Capital.
Major gainers from the Sensex pack were RIL (5.71 percent), Tata Motors (3.51 percent), Gail India (2.49 percent), HDFC Bank (1.96 percent), Tata Steel (1.85 percent), BHEL (1.83 percent), Sterlite (1.81 percent), L&T (1.77 percent), Sun Pharma (1.67 percent) and ICICI Bank (1.52 percent).
HDFC (1.47 percent), Maruti Suzuki (1.25 percent), Bajaj Auto (1.22 percent), Hindalco (1.16 percent), M&M (l.12 percent) and Hero Moto (1.06 percent) also notched up smart gains.
Among the sectoral indices, the BSE-Oil&Gas shot up by 3.03 percent, followed by the BSE-Auto (1.70 percent), the BSE-Bankex (1.38 percent), the BSE-CG (1.37 percent) and the BSE-Realty (1.24 percent).
The total market breadth at the BSE turned positive as 1,676 shares finished higher while 1,162 shares ended lower.
The total turnover dropped to Rs 1,684.88 crore from Rs 1,905.55 crore last Friday.
Meanwhile, Foreign Institutional Investors (FIIs) remained net buyers and they pumped in Rs 167.70 crore on last Friday as per Sebi data.
First Published: Monday, August 06, 2012, 13:11