Mumbai: The BSE Sensex maintained its rising trend since last week as it shot up by more than 400 points at midsession on Monday on funds buying blue-chip stocks led by the software and realty sectors.
A firm opening in European and Asian stock markets further fuelled sentiment and 30-share Sensex climbed 411.46 points to 15,156.38 at 1:30pm.
The 50-share National Stock Exchange index Nifty rose by 117.25 points, or 2.68%, to 4,492.20.
The upsurge was supported by information technology shares after segment major Tata Consultancy Services, a leading software developers and Sensex-linked firm, recorded handsome gains of over 17.42% after its first-quarter profit beat analysts’ estimates.
The current rally recorded a gain of 9.2% last week, recovering most of the 9.5% loss a week earlier after the Budget revealed the widest budget deficit in 16 years and failed to lay out firm plans to sell state assets.
The stocks’ rating was raised to “equal-weight” from “underweight” at Morgan Stanley, which said uncertainty over earnings in the current fiscal year has been reduced.
Foreign institutional investors bought a net Rs292 crore of Indian stocks on 16 July.
Markets extended gains to 2% by midday as index futures pointed to a higher start for European markets after hopes for a global economic recovery had lifted sentiment across Asia.
Asian shares were higher on Monday, with MSCI’s measure of Asian markets excluding Japan rising 2.2% Japan’s Nikkei was closed for a public holiday.