Sep 07, 2012, 11.28 AM IST
The BSE Sensex gained more than 300 points and NSE Nifty crossed the 5300 level quite nicely in early trade, aided by the rally in global markets after the European Central Bank announced new bond buying program called Outright Monetary Transactions.
ECB's new bond buying program includes unlimited purchases of bonds with period of 1-3 years, subject to conditionality. The negative part is that the ECB cut growth forecast for 2012 and 2013, but the market ignored the same.
Asian markets moved up between 1% and 2% while US markets closed higher with 2% gains yesterday. The better-than-expected ADP employment, weekly jobless claims and ISM Services data in the US too supported the rally.
Back home, Sterlite Industries, Sesa Goa, Hindalco, Tata Motors, IDFC, DLF, JP Associates, L&T, BHEL, Bharti and Reliance Industries shot up quite sharply.
The Bank Nifty jumped 162 points as the country's largest lenders ICICI Bank and SBI gained 2.7% and 1.8%, respectively.
Coal India, HDFC Bank, ITC and HUL gained 0.5-1%.
The CNX Midcap Index rose 85 points or 1.2% to 7,212 as about four shares advanced for every share declined on the National Stock Exchange.
In the second line shares, Delta Corp, Kingfisher, PFC, HDIL, Indiabulls Real, IVRCL and Sintex were up 2-3%.
Mercator shot up 10%.
Mahindra Ugine surged 10% as The Times of India reported that Mitsui and Sanyo bought 49% in company's steel business for Rs 218 crore.
Sugar stocks too participated in the rally. Balrampur Chini, Shree Renuka and Bajaj Hindusthan gained 1-1.5%.
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