The BSE Sensex today logged the biggest single-day gain this year - up 464 points during the mid-session trade on brisk buying by funds following government notifying its decision to allow FDI in multi-brand retail, aviation and broadcasting sectors.
Investor sentiment got further boost on increasing signs of political stability, marketmen said. In a big relief to the Congress on a day Trinamul the Congress pulls out of the UPA, the Samajwadi Party today pledged to continue support to the government as it “does not want to let communal forces to come to power”.
The BSE 30-share index, Sensex, resumed higher and shot up to gain 463.79 points, or 2.53 per cent to 18,813.04 at 1230 hrs, surpassing its previous biggest single day rise this year of 443 points on September 14.
At the same time, the National Stock Exchange index’s 50-share index Nifty shot up by 165.75, or 2.98 points to regain a crucial 5,700 level at 5,720.
On a day opposition parties enforced a nation-wide bandh, the government yesterday came out with notifications implementing its reforms decisions of foreign direct investments taken last week. The government’s resolve to further economic reforms boosted investor sentiment, brokers said.
They said a firming trend in Asia as stimulus moves by the central banks of the US, Europe and Japan also supported the uptrend. The current rally was led by stocks of banking, power and metal sectors.