The BSE benchmark Sensex snapped its three-day losing streak on Thursday after the International Monetary Fund said India's economy was recovering and its ability to withstand external shocks had improved, although it noted growth is likely to fall short of government targets.
The 50-share Nifty jumped in trades today and closed above its important psychological level of 8,750 led by gains in heavyweight stocks like ITC, Sun Pharma, Hindalco and DLF.
Buying was visible across the sectors. Power, metal, realty, capital goods, FMCG and consumer durable stocks came in high demand.
Insurance companies gained in trades today on hopes that the government would pass the insurance bill in the Rajya Sabha. The bill calls for raising the foreign investment limit in the insurance sector to 49 per cent from 26 per cent.
Following this development, the stocks related to insurance companies jumped. Max India advanced over 5 per cent to end at Rs. 487. Reliance Capital jumped 11 per cent to Rs. 492 and Bajaj Finserv gained 2 per cent to Rs. 1,480.
Shares of ITC jumped over 2 per cent to Rs 346 on reports that the company has increased prices of its cigarettes by 10-25 per cent.
state-run banks saw a renewed buying interest a day after the government signalled that it is ready to allow lenders raise funds from the market to meet their capital needs.
The CNX PSU bank index rose nearly 1 per cent. Oriental Bank, Allahabad Bank, Bank of Baroda, IDBI Bank and Bank of India jumped 1-2 per cent each.
From the Nifty basket, Cairn India, Sesa Sterlite, NTPC, Hindalco, DLF, Sun Pharma, BHEL, Tata Motors, Tata Steel and NMDC were among the top gainers, up over 2 per cent each.
On the other hand, Tech Mahindra, Mahindra & Mahindra, Bajaj Auto, Dr Reddy's Labs and Coal India were among the notable losers on the Nifty.
The overall breadth was positive on the BSE as 1,650 stocks advanced while 1,220 declined.
The Sensex finally closed at 28,930, up 271 points and the 50-share Nifty advanced 76 points to settle at 8,776.
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