Mumbai :The BSE benchmark Sensex today not just turned things around, but did it in style when it ended the day up 323 points, its highest close in more than three months.
The splendid show was primarily driven by bargain hunting in beaten-down stocks, including Sun Pharma, up 3.35 per cent.
“Indian stocks swung back as yesterday’s falls were deemed overdone, and investors hunted for value amid the price falls. It also helped that proposal to amend the Land Bill so as to give more flexibility to states was seen favourably,” said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas.
There was considerable improvement in sentiment with the adoption of a select committee report on GST Bill by the Upper House of Parliament during the trading hours. Progress of rains and softer oil prices meant RBI gets enough headroom to consider a policy rate cut, which pushed up buying activity.
Fresh buying, especially in refinery, banking, auto, power and metal provided further momentum.
The 30-share Sensex took some early blows mainly due to initial selling, but quickly shaped up before settling the day at 28,504.93, up 322.79 points, or 1.15 per cent.
It had lost 281.17 points, or 0.99 per cent, in the past two days.
The broader 50-share Nifty played along, surging 104.05 points, or 1.22 per cent, to 8,633.50.
The closing for both the benchmark indices is the highest since April 16.
Of the 30 constituents, 22 ended with gains.
Reliance Industries was the top gainer (4.26 per cent) while M&M, Sun Pharma, Bajaj Auto and HDFC too advanced.