Upbeat global mood, reforms do the job, Sensex zooms 402 points

Mumbai :The stars today aligned for the benchmark BSE Sensex which propped up by positive feelers from global markets and a slew of reforms back home went full throttle ahead, surging 402 points to settle at a one-week high of 25,719.58.

The NSE Nifty too gave a better account of itself, retaking the crucial 7,800-mark.

On Wednesday, the Cabinet approved norms for trading in spectrum among mobile operators and cleared the launch of a gold sovereign bond and a scheme designed to mobilise gold stored in households and temples as part of its efforts to curb demand for the metal.

Finance Minister Arun Jaitley today also said the government over the next few days will make public a list of tax exemptions to be phased out so as to rationalise the taxation structure.

Apart from these investor-friendly steps, upbeat global markets tracking overnight gains in Wall Street indices, signs of stability in China on hopes of a government stimulus and Japanese stocks registering their biggest one-day gain of 7.7 per cent since 2008 lifted spirits.

The 30-share index after hitting the day’s high of 25,820.56 closed up 401.71 points, or 1.59 per cent, at 25,719.58 — its highest closing since September 3.

The gauge has now covered up 826 points in two sessions.

The 50-issue NSE Nifty settled at 7,818.60, higher by 130.35 points, or 1.70 per cent, logging an intra-day high of 7,846.05.

It was an across-the-board rally, with all BSE sectoral indices advancing led by metal and auto.

The rupee firmed up to 66.41 against the US dollar, which contributed to the positive sentiment.

Telecom stocks were on a song as Bharti Airtel rose 2.44 per cent, Reliance Communication surged 11.57 per cent and Idea Cellular gained 2.12 per cent.

Hindalco was the top BSE gainer (7.97 per cent), followed by Vedanta NTPC, Tata Steel and Tata Motors.

“All the sectors ended in green and the major gainers for the day were metal, auto and realty, which closed up to 3.54 per cent higher,” said Delhi-based NSE broker Manoj Choraria.

Meanwhile, foreign investors net sold shares worth Rs 659.67 crore yesterday, provisional data showed.

Reflecting the mood, European shares traded in the green in late-morning deals, amid optimism that China’s stock market turmoil would be contained.