Mumbai: The BSE benchmark Sensex on Tuesday recorded its second biggest gain of 350 points this year to regain the psychological 16,000 level on funds buying spurred by firm global cues and hopes of rate cuts by RBI after easing inflation.
After a better start, the Sensex spurted by 350.37 points, or 2.22 percent to 16,165.09, a level last seen on December 13 last year, and the second biggest gain after January 3.
Brokers said a firming global trend on speculation European officials will take measures to resolve the region’s debt turmoil boosted market sentiments.
The broad-based National Stock Exchange index Nifty shot up by 106.75 points, or 2.25 percent to 4,849.55 with stocks of realty, capital goods and banking sector recording handsome gains.
Reliance Industries zoomed 3.99 percent to Rs 735.15 and Infosys by 0.94 percent to Rs 2,863. The two carry nearly 20 per cent weightage on the Sensex. State-run State Bank of India surged 3.93 percent to Rs 1,702.05.
In 30-BSE index kitty stocks, barring Gail India and Tata Consultancy Services, all closed with gains. All the 13 sectoral indices were in positive zone with gains up to
4.20 percent.
The undercurrent of the market was bullish as international rating agency Moody's indicated a hefty inflow of 56 percent rise in foreign direct investment in November and a steep indirect tax collection from April to December.