Sensex ends with biggest ever single-day gain

Sensex ends with biggest ever single-day gain

Mumbai, 19 September Markets closed firmly with the day ending with the biggest-ever single-day gain of 654 points at 16,323.

Sensex crossed the new landmark of 16,000 with a strong buying momentum and the gains were extended throughout the day as the day progressed. The index hit an all-time, intra-day high at 16,335 - up 666 points from the previous close.

Open: The downward revision of interest rates by US Federal Reserve triggered a bull run on the Bombay Stock Exchange today as the benchmark Sensex zoomed 539 points to cross 16,000-point mark.

The 30-share Sensex, which covered the 1,000 points from 15,000 to 16,000 level in 51 days, shot up by 538.70 points in the midsession trade from previous day’s close of 15,669.12 on funds buying in heavyweights in banking, metal and realty sector.

The wide-based National Stock Exchange’s Nifty also crossed 4,700-point mark, gaining 163.05 points to 4,709.25. Nifty futures for September delivery gained 2.4 % to 4,6061.

The key index crossed the 16,000 level boosted by the US Federal Reserve cutting the benchmark interest rates by 50 basis points, easing concerns that a housing slump will drive the world’s largest economy into recession.

The major support to the market was extended by banking, metal and realty sectors as market expected the cut in the interest rate might generate liquidity and a safety net to protect the marks from subprime mortgage crisis.

Marketmen said foreign investors might get more funds to invest in emerging markets such as India and China.

“The US Fed cutting interest rate might have some positive impact on the banking system here and the RBI might follow suit," said a leading investor Ratnesh Gupta.