Sensex posts biggest-ever gain

After a getting a severe whipping in the last three days, bulls charged back into action on Thursday. With bargain hunters back in the ring, the benchmark Sensex soared nearly 616 points, posting its biggest-ever single day gain in points after a three-day slide.

After a getting a severe whipping in the last three days, bulls charged back into action on Thursday. With bargain hunters back in the ring, the benchmark Sensex soared nearly 616 points, posting its biggest-ever single day gain in points after a three-day slide.

It was an absorbing session from the start to the finish. The BSE Sensex vaulted a record-breaking 615.62 points after three consecutive bearish sessions. The benchmark index after surging almost 4 at the opening at one point of time, came out all guns blazing to finish on 9,545.06, a rally of 6.89. A recovery across global markets, including Asia, also added to the market sentiment.

8216;8216;We8217;re seeing some buying coming in, and the Bank of Japan decision was also a positive,8217;8217; said a dealer. 8216;8216;But this pace may not be sustained, and we may see some unwinding of positions tomorrow, ahead of the weekend.8217;8217;

Japan8217;s central bank on Thursday decided to maintain its monetary policy of pegging the key overnight lending rate near zero. However, investors are still worried about the possibility of further rate hike in the US.

Investors also remain concerned about foreign fund outflows and the impact of higher interest costs. Foreign funds, which have nearly halved their investments this year, sold shares on Tuesday after seven straight sessions of buying.

Their net investment this year totals 2.57 billion. The index is still down by nearly a quarter from a May 11 peak of 12,671.11. The slide has wiped out 244 billion in market capitalisation. At its peak, the market was worth 745 billion, nearly equivalent to the gross domestic product of Asia8217;s third-largest economy.

Software services firms and auto makers led the rally on the Indian index, with bellwether Infosys Technologies rising nearly 10 per cent to Rs 2,728.25, and top exporter Tata Consultancy Services up 4.5 per cent to Rs 1,554.35.

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Top vehicle maker Tata Motors rose more than 5 per cent to Rs 694.65, and heavyweight Reliance Industries gained more than 4 per cent to Rs 895.20.

The rally was broad-based, with a host of stocks participating. This was the key attribute to the positive market-breadth. The BSE mid-cap index rose 5.47 while the BSE small-cap index rose 3.91 . All the 30 shares from the Sensex pack ended with a sharp surge.

Bhel was the biggest gainer, up 15.13 to Rs 1,847.50. Grasim Industries spurted 14.50 to Rs 1,825, while FMCG heavyweight HLL surged 9.80 to Rs 204.40.