Sensex gains 521 pts, records biggest gain in 5 months

Indian stocks recorded the biggest single day gain in over a year.

On Tuesday, Indian markets recorded its biggest single-day gain in nearly five months. Sensex leaped 521 points to 28,051. Nifty too crossed the 8,600-mark

Sensex resumed higher and quickly crossed the 28,000-mark to hit a high of 28,064.39 before settling at 28,050.88, a significant gain of 520.91, or 1.89 per cent.

This was the biggest single-day gain since May 25 when it had gained 575.70 points.

The NSE Nifty retook the 8,600-mark to touch a high of 8,659.80 and finally settled up 157.50 points, or 1.85 per cent, at 8,677.90.

Over optimistic investor sentiment over the Goods and Services Tax Council meeting that began in Delhi to decide on rates and slabs of the indirect tax.

Overseas cues also remained strong. Global indices trended up after an unexpected fall in US manufacturing index tempered hopes of an interest rate hike by the Federal Reserve, brokers said.

Besides, there were expectations that inflation will stay in the RBI comfort zone, which will usher in lower borrowing costs. The rupee recovering against the dollar too had a positive impact.

The banking sector recovered, with private lender ICICI Bank zooming 4.58 per cent. Axis Bank rose 2.59 per cent, HDFC Bank 1.58 per cent while SBI gained 1.50 per cent.

The second-line stocks too witnessed heavy buying, lifting the mid-cap index by 1.89 per cent and small-cap by 1.30 per cent.

Among sectoral indices, the banking index topped the chart by climbing 2.37 per cent followed by capital goods 2.07 per cent, IT 1.84 per cent, metal 1.82 per cent and technology 1.68 per cent.

Other Asian markets also ended higher with Japan’s Nikkei up 0.38 per cent, Hong Kong’s Hang Seng 1.55 per cent and Shanghai Composite 1.40 per cent.

European markets also opened on a positive note, tracking gains in Asian trading amid a slide in the US dollar ahead of US inflation data. London’s FTSE, Paris CAC 40 and Frankfurt’s DAX 30 all gained up to 1.21 per cent in their early trade.

(With inputs from PTI)