Sensex soars 337pts on ECB's bond buying plans;ICICI, RIL lead
Led by ICICI Bank and RIL, the Sensex on Friday surged over 337 points - the biggest single day gain in two months - on all-round buying by funds after European Central Bank announced a potentially unlimited bond-buying plan to revive Eurozone's ailing economies.
The BSE benchmark index, which had gained 33 points ahead of the ECB meet on Thursday, was off to a rollicking start today tracking overnight gains in US stocks and early Asian cues.
The 30-share Sensex opened 229 points higher and thereafter built on gains with ICICI Bank, RIL, Infosys and L&T leading the rise.
Sensex finally ended at 17,683.73, up 337.46 points, or 1.95 per cent. The Sensex's gains were supported by Tata Steel that rose 5.72 per cent, Tata Motors (4.40 pc), Hindalco (3.39 pc) and Sterlite (2.83 pc).
Today was the best single day performance since June 29 when Sensex rose by 439 points.
Overall, nearly 1,800 stocks rose and investor wealth surged by Rs 84,000 crore. Brokers said trading sentiment was bolstered as ECB's new bond buying plan will likely lower the borrowing costs for the region's debt-ridden nations and ease fears over euro's fate.
Capital stocks were among the best performers on the back of foreign funds flow while realty and metal stocks were also among the biggest gainers. Most banking stocks, including ICICI Bank up 4.68 per cent and SBI which gained 2 per cent, also rose on expectations of a rate cut in RBI's policy meet on September 17, said dealers.
RIL rose 3.08 per cent to Rs 791 on reports of a foreign upgrading its rating.
"This (ECB's plan) means that, the prospect of defaults by sovereigns has reduced in EU. That supported markets," said Dipen Shah, Head of Private Client Group - Research, Kotak Securities.
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