The benchmark BSE Sensex today rebounded 263 points, clocking its best daily gain in 7 weeks, led by metal, banking and capital goods shares as global investor sentiment improved on reports that tension between Russia and Ukraine appeared to be easing.
After falling 173 points in the previous session, the BSE Sensex shot up by 263.08 points, or 1.26 per cent, to end at 21,209.73, a level last seen on January 23. Today's gain was the best rise since 375.72-point jump on January 13.
ICICI Bank, RIL and L&T led 28 gainers in 30-share Sensex. Hindalco and Sesa Sterlite were the biggest gainers. Dr Reddys and Sun Pharma were the two laggards.
Metal outshined other sectors. The BSE Metal sector index gained the most by rising 3.31 per cent, followed by Banking index (up 2.47 per cent), Capital Goods index (2 per cent) and Consumer Durables index (1.95 per cent). Overall, 10 of the 12 BSE sectoral barometers gained. IT and healthcare fell.
Brokers said investor confidence in emerging markets was boosted after Russia President Vladimir Putin ordered tens of thousands of Russian troops participating in military exercises near Ukraine's border to return to their bases.
The 50-share NSE index Nifty shot up 76.50 points, or 1.23 per cent, to end at 6,297.95, after hitting a crucial 6,300 mark level in intra-day trade.
"Last session had seen heavy selling pressure following tensions or uncertainties rising from Ukraine and Russia issues. However, as hopes revive that soon peaceful solution shall be met, market sentiment was boosted by recovery in other global markets too," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
India's BSE Sensex turns positive for 2014, outperforms Asian indices as Ukraine crisis de-escalates
(Reuters) BSE Sensex index turned positive for the year after rising more than 1 percent for its biggest daily gain since mid-January, as continued foreign investor buying is sparking optimism about blue-chips such as ICICI Bank.
The gains were helped by a recovery in emerging markets following signs that Russia may be seeking to avoid further escalation of its military involvement in Ukraine, although gains in India far outperformed the region.
The BSE Sensex index provisionally rose 1.26 percent, for a gain of 0.2 percent for the year, marking its biggest daily percentage gain since Jan. 13.
The broader NSE Nifty index ended up 1.23 percent.
By contrast, the MSCI Asia-Pacific index excluding Japan rose 0.1 percent.
ICICI Bank Ltd provisionally rose 3.7