Indian shares effected a smart rally today to end almost 2% higher than yesterdayâ€™s close. Market sentiment was boosted by a two-year low in headline inflation and better than expected quarterly growth figure from China.
The 30-share Sensex of the Bombay Stock Exchange (BSE) ended at 16,466 up 277 points or 1.7% while the 50-share Nifty of the National Stock Exchange (NSE) ended at 4,967 up 93 points or 1.9%.
The Sensex and the Nifty touched an intra-day high of 16,501 and 4,976, respectively.Â Asian markets, had shot up after the release of last quarter figures from China. GDP growth clocked in at 8.9%, below last yearâ€™s figure but higher than market expectations.
The Nikkei, Kopsi, the Strait Times, Shanghai Shenzhen, and the Hang Seng all closed with a gain between 1 and 4%. Among Indian stocks the RIL and L&T were the top gainers in todayâ€™s rally rising between 3 and 5%. Metalâ€™s traded higher on positive Chinese data with the major Metal companies like Hindalco, Tata Steel, Sterlite etc gaining between 2 and 6%.
Rate sensitive sectors made major gains today on expectation that the RBI would cut rates in its January 24 review. Realty gained for the sixth straight session, DLF gained nearly 2%. Auto shares also climbed with Maruti Suzuki gaining nearly 10.48% after reports that the company would raise prices for its machines between 0.3% to 3.4%.
Broader markets also ended in the green. The BSE 500 index closed 1.56 percent higher from its previous close. The BSE midcap index moved up 1.29 percent and the BSE smallcap index rose 1.1 percent.
The market breadth was positive with 1,784 stocks advancing, compared to 1,052 on the decline. Another 149 remained unchanged.