Mumbai: In a complete U-turn, the equity market reversed previous session's heavy losses with Sensex and Nifty-50 gaining 2.9 per cent on positive global cues like a drop in US treasury bond yields and a 15-basis points rate cut by China's central bank for five-year loan rate.
Sentiments also got a boost in the domestic market after positive commentary from the finance minister. The FM said India's economic growth is likely to be robust at 8.9 per cent in the current financial year, reflecting the country's strong resilience and speedy recovery, said analysts.
The Sensex gained 1534 points or 2.91 per cent closing at 54326. The NIfty-50 gained 456.75 points or 2.89 per cent closing at 16,266.
The buying came mainly from the domestic institutions, who bought equities worth Rs 2,148.95 crore while the foreign portfolio investors sold equities worth Rs 1,265.41 crore.
All sectoral indices gained led by heavyweight Nifty Bank Index which gained 2.88 per cent while IT stocks recovered from the big fall, with Nifty IT index gaining 1.54 per cent.
The market witnessed elevated volatility led by global cues before snapping a five-week losing streak, but the market is expected to remain bumpy next week too, said analysts.
"The volatility observed this week is expected to continue considering major economic data releases, the current earnings season, and the monthly expiry. The FOMC minutes, US GDP growth rate forecasts, and initial jobless claims will all influence global market sentiment,” said Yesha Shah of Samco Securities.
