Sensex, Nifty register biggest single-day gain in seven years

On all-round buying following government’s commitment to keep the deficit at 3.5 pct and growth-oriented budgetary proposals.

Growth-oriented budgetary proposals like higher spending in infrastructure, allocation of nearly Rs 36,000 crore for the farm sector and a higher credit target aimed at doubling farmers’ income in five years buoyed sentiment, brokers said.

The government’s commitment to keep the deficit at 3.5 per cent of GDP in 2016-17, too buoyed market sentiment, they added.

The rupee strengthening by 47 paise to 67.95 against the American currency during the intra-day trade at the forex market also boosted the market sentiment.

Shares of FMCG, Consumer Durable, Realty, Auto, Banking, Auto, Capital Goods and Industrials firmed up sharply on good buying enuiries.

The sensex resumed higher at 23,153.32 and hovered in a range of 23,821.49 and 23,133.18 before ending at 23,779.35, showing a biggest gain of 777.35 points or 3.38 per cent after nearly 7 years. It had gained by 2,110.79 points or May 18, 2009.

The NSE 50-share Nifty also rose by 235.25 or 3.37 per cent to 7,222.30, showing a biggest gain after May 18, 2009 when it ended higher by 651.50 points.

In overseas stock markets, Chinese stocks led gains in Asian markets after China’s central bank cut further the reserve requirement ratio by 0.5 pct in an attempt to calm investor jitters over the world’s second largest economy.

European stocks were also trading higher as key indices like France, Germany and UK firmed up by 0.20 pct to 1.10 pct.

Steel stocks extended previous trading session’s gains triggered by higher allocation to infrastructure sector in the Union Budget 2016-17.