Snapping a four-day fall, the Bombay Stock Exchange benchmark Sensex today rose 117 points on firm global cues after the US lawmakers reached an agreement at the eleventh hour to raise the country’s debt ceiling to avoid a default.
The Bombay Stock Exchange’s 30-scrip index, which had lost over 674 points in the last four sessions, rose 117.13 points or 0.64 per cent to 18,314.33, with IT, auto and heavy machinery stocks leading the recovery. The gauge touched the high of 18,440.07 during intra-day.
Brokers attributed the widespread recovery in stocks to a firming trend in Asia after the US President, Mr Barack Obama, announced that the country had reached an agreement to reduce the budgetary deficit and avert a debt default.
Good exports data at home further supported the market sentiment.
The rally was led by heavy trading in Sensex leader Reliance Industries, IT bellwether Infosys, country’s biggest lender SBI, Tata Motors, Tata Steel, Mahindra and Mahindra, Larsen and Toubro among others.
IT sector was the best performer, rising 0.86 per cent on expectations that a fast global recovery would boost the demand for software business. Teck sector index followed next, rising 0.81 per cent, and auto sector index by 0.79 per cent.
Similarly, the broad-based National Stock Exchange’s index Nifty closed up 34.80 points or 0.63 per cent at 5,516.80, after touching the day’s highest at 5,551.90.