Mumbai: Rising for the fourth day, the BSE benchmark Sensex on Friday posted a 270-point upsurge, the biggest gain in 2013 so far, to end at one-month high of 19,683.23 on good buying in financials, refinery, FMCG and metal scrips on renewed hopes of a rate cut, amid a rally in global stocks.
A positive jobs report pushed the Dow Jones yesterday to another record high this week and better-than-expected Chinese exports helped boost Asian and European stock markets today.
The Bombay Stock Exchange 30-share indicator resumed higher and remained in positive terrain throughout the day before ending sharply higher by 269.69 points or 1.39 percent at 19,683.23. The gains were largest in absolute term since November 11, 2012 when it had spurted by 328.83 points.
On a weekly basis, it has gained 764.71 points or 4.04 percent, biggest after November 2012's last week when it had spurted by 833.33 points or 4.50 percent.
The NSE 50-issue CNX Nifty also flared up by 82.40 points or 1.41 percent to close at one-month high of 5,945.70.
Out of 13 sectoral indices, only IT and Teck indices ended lower while others finished with gains.
Steep rise in counters like HDFC, ITC, HDFC Bank, RIL, ICICI Bank and L&T together contributed over 200 points to the Sensex's gains. SBI, ONGC, Jindal Steel, M&M, Tata Steel, HUL, GAIL and Coal India also closed with smart gains.
Second-line stocks, which were in demand for last of days, however underperformed the Sensex.
Foreign Institutional Investors (FIIs), the main market mover, picked up shares worth Rs 630.47 crore yesterday as per provisional data with stock exchanges.
Brokers said the upsurge in the market was mostly attributed to expectations of an interest rate cut by the Reserve Bank of India in its policy review this month.
Investors are now looking forward to industrial output data due next week, traders said.
Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities said expectations of further reforms from the government has improved the sentiment.
Across-the-board buying on strong global cues and indications of more sops by Finance Minister had lifted Sensex on March 5 by over 265 points.
Today, across the BSE, over 1,730 stocks ended with gains while 1,135 scrips settled lower. Investor wealth soared by nearly Rs 75,000 crore to Rs 67.40 lakh crore.
"It was another day of good run for the markets as the Nifty closed the day decisively above the 5900 mark," said Shubham Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities.
Rate-sensitive sectors like banking, auto and realty also recovered from lower levels. "We expect repo rate cut of 0.25 per cent in forthcoming monetary policy review," said Amar Ambani, Head of Research, IIFL.
Meanwhile, Asian stocks closed mixed with upward bias as Japan's economy returned to growth and jobless claims in the US dropped, adding to signs that global economy is recovering.
Key benchmark indices in Hong Kong, Japan, South Korea and Taiwan rose while from China and Singapore declined.
European markets, however, trading higher in early deals. The CAC was up by 0.75 percent, the DAX by 0.53 percent and the FTSE by 0.31 percent.
Turning to the local market, 25 scrips in Sensex ended higher while 5 counters finished lower.
Major Sensex gainers were Jindal Steel (5.73 percent), HDFC (4.04 percent), Gail India (2.91 percent), HDFC Bank (2.44 percent), Tata Steel (2.36 percent), Coal India (2.32 percent), L&T (2.23 percent), ITC (2.07 percent), M&M (1.97 percent), RIL (1.84 percent), ICICI Bank (1.82 percent), ONGC (1.77 percent), Hero Motocorp (1.73 percent), SBI (1.64 percent), Cipla (1.35 percent), HUL (1.17 percent) and Bajaj Auto (1.10 percent).
However, Maruti Suzuki dropped by 1.64 percent and Infosys by 1.15 percent.
Among the sectoral indices, the S&P BSE Oil&gas rose by 2.0 percent, followed by S&P BSE-FMCG (1.93 percent), S&P BSE-Metal (1.77 percent), S&P Bankex (1.72 percent), S&P BSE-CG (1.57 percent), S&P BSE-PSU (1.41 percent) and S&P BSE-Power (1.05 percent).
The total turnover rose to Rs 2,149.54 crore from Rs 1,930.62 crore yesterday. FIIs picked up shares worth Rs 630.47 crore yesterday as per provisional data with stock exchanges.