Sensex closes above 7,800

Stocks in auto, FMCG and pharma sectors were in demand on reports that the outlook for the current year was good. HLL moved up on huge volumes due to a massive block deal in the counter.

With today’s surge, Sensex has accumulated 220.94 points in the past two trading sessions from 7,595.57 on August 9, 2005, after the Fed on Tuesday signalled that it would stick with its steady pace of rate rise. Low US interest rates have been one of the reasons for FII inflows across emerging markets, including India, in the past few months. Hence, the Fed’s signal that a steep hike in the US rate in future may not be on the cards sent domestic equities surging.