Benchmark indices Sensex and Nifty snapped two days of losing streak powered by a strong rally in Reliance Industries on reports of more potential investments in its retail arm. While Sensex closed 646.40 points or 1.69 per cent higher at 38,840.32, Nifty rallied 171.25 points or 1.52 per cent to 11,449.25.
Reliance Industries stock was the top gainer closing over 7 per cent higher on both Sensex and Nifty. Market cap of the firm rose to Rs 14.66 lakh crore (USD 199.64 billion) in afternoon trade.
The rally comes after the conglomerate announced on Wednesday that US private equity firm Silver Lake Partners would buy 1.75 per cent stake in its retail arm for Rs 7,500 crore.
RIL share hits all-time high, market cap above Rs 14 lakh cr for second day
Later, Reliance Industries share closed 7.10% at Rs 2314 against previous close of Rs 2161. The Mukesh Ambani-led firm also became first from India to hit the market cap of $200 billion today.
Deepak Jasani, Head of Retail Research at HDFC Securities said, "Nifty has risen with an upgap and closed above the recent resistance of 11437. The level of 11507 could provide the next resistance. The rally will have to be more broad based for it to sustain."
Other Sensex gainers were Asian Paints (4.25%), Axis Bank (3.70%) , UltraTech Cement (2.79%) , IndusInd Bank (2.51%) and Bajaj Finance (2.20%).
On the other hand, Tata Steel, Bharti Airtel, Kotak Bank, HDFC Bank and Titan lost up to 2.24%. Of 30 Sensex stocks, 21 closed in the red.
Aamar Deo Singh, Head Advisory at Angel Broking said, "Markets witnessed a sharp rebound today, on the back of 7 percent jump in Reliance Industries. The benchmark index Nifty 50 rose by 1.5% to end the session at 11,449 whereas the Bank Nifty posted only marginal gains of 0.89%. Advances outnumbered declines by over 3:1, with the other midcap and smallcap indices also rising by 1%-1.5%, indicative of a broad-based rally today. Nifty continues to trend higher, with the upside resistance seen around 11650-11700 zone whereas support is seen around 11100-11150 levels."
Midcap and smallcap indices on BSE closed 132 points and 181 points higher, respectively. Oil and gas, banking and energy stocks led the gains in trade today. BSE energy index rose 393 points to 6,673 and BSE bankex gained 209 points to 25,483. BSE oil and gas index climbed 459 points to 13,268 led by gains in RIL which rose 8.4% to a fresh all time high of Rs 2,343 on BSE.
Market breadth was positive with 1789 stocks ending higher against 922 falling on BSE. 165 stocks were unchanged.
Global markets
The Dow Jones Industrial Average climbed 439.58, or 1.6%, to 27,940.47. The Nasdaq composite, which includes many tech stocks, rose 293.87, or 2.7%, to 11,141.56. It had dropped 10% over the previous three days.
Bourses in Shanghai and Hong Kong ended in the red, while Seoul and Tokyo closed with gains.
Stock exchanges in Europe were also trading on a mixed note.