A burst of buying towards the fag end of trade helped the BSE Sensex surge by 637 points and Nifty to vault above the 11000-mark on Thursday after media reports said the government might address tax concerns of market participants.
After a moderate opening, the Sensex, which remained in the green through the day, saw a sudden spurt in the last hour of trading, led by energy, banking and IT counters. It finally finished at 37327.36, up 636.86 points, or 1.74 per cent.
Similarly, the Nifty climbed 176.95 points, or 1.63 per cent, to 11032.45.
This was the biggest single-session gain for the key indices after May 20, when they had gained over 3.6 per cent.
The broader BSE Mid-Cap and Small-Cap indices spurted up to 0.74 per cent.
All sectoral indices ended in the green, with BSE energy, auto, IT, tech, oil & gas, telecom, realty, Bankex, power, finance, FMCG, metal and utilities indices rallying up to 3.15 per cent.
Global equities were steady as trade war fears ebbed, while encouraging Chinese trade data propped up Asian markets.
Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended in the green. Markets in Europe were also trading on a positive note.
Technical View
Analysts said the Nifty has formed a strong bullish candle, indicating a further upswing in the Index. A decisive and sustainable up-move above the key resistance point of 11100 could make up for further upswing and the Index could move towards 11300-11350 levels in the coming days.
Aditya Agarwala, Senior Manager, Yes Securities, said, "The Nifty has been forming higher lows for last three sessions and has now made a higher high, after forming a hammer candlestick on Monday. This suggests a short-term trend reversal in favour of the bulls. A sustained trade above 11025 can take the Nifty higher to 11085-11150 levels."
Market View
Devang Mehta, Head-Equity Advisory, Centrum Wealth Management, said: "Some confidence boosting measures and steroids for the economy are expected as the Finance Ministry seems to be engaging in extensive discussions with industry participants. However, it's too early to speculate on policy decisions, but a bounce back after such a huge fall was not entirely unexpected."
