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Sensex jumps most in 4 weeks on global rally, soars 460 pts


The BSE Sensex logged its biggest single-day gain in nearly four weeks, surging 460 points to 25,688.86, on a flurry of buying activity after global shares rallied on hopes that the US Federal Reserve will remain cautious on interest rate hikes.

Besides, a string of encouraging quarterly numbers so far raised expectations of an improvement in the economy.

Sentiment was supported by lower-than-expected US April non-farm payroll numbers, as it meant the Fed would take longer time to raise interest rates.

Two-wheeler maker Bajaj Auto was the biggest gainer on the index, climbing 3.78 per cent to Rs 2,527.95, while Axis Bank followed with a gain of 3.41 per cent to Rs 477.25.

Mortgage lender HDFC continued its winning streak for yet another day, on the back of upbeat fourth quarter earnings, surging 3.12 per cent to Rs 1,204.

“Weak US payroll data gave support to rising hopes that the Fed will not raise interest rates in June this year,” said Shreyash Devalkar, Fund Manager – Equities BNP Paribas MF.

European markets climbed after Greek lawmakers adopted further austerity measures as Athens bids to unlock more bailout money.

Back home, the Sensex resumed up at 25,321.83 and shot up further to a high of 25,709.68 before ending at 25,688.86 — its almost two-week high—showing a gain of 460.36 points or 1.82 per cent. This is the index’s biggest single-session gain since April 13.

The NSE 50-share Nifty rose by 132.60 points or 1.71 per cent to close at 7,866.05.
ITC surged by 2.38 per cent to Rs 324.75 after the company said there is “progressive resumption” of production at its cigarette factories.

Jewellery stocks like P C Jewellers and Titan rose 1.03 per cent and 0.41 per cent, respectively, on hopes of a pick up in buying on the occasion of Akshya Tritiya.

In Europe, gains were supported by a latest data showing German manufacturing orders rebounded sharply in March. Key indices from the continent, like in France, Germany and the UK, were higher by up to 1.85 per cent.

Asian stocks ended mixed. The Shanghai Composite ended 2.79 per cent lower, indices in Taiwan and South Korea moved down by up to 0.45 per cent while Hong Kong, Japan and Singapore based shares finished higher between 0.23 per cent and 1.29 per cent.


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