A spectacular surge in Tokyo lifted sentiment across Asia and India was no exception. The bulls rallied for the second day running to help indices reclaim crucial levels.
The Sensex was up 401.71 points or 1.6 percent at 25719.58 and the Nifty gained 130.35 points or 1.7 percent at 7818.60. About 1975 shares advanced, 718 shares declined and 108 shares were unchanged.
Analysts feel that the market will surge ahead now. Nilesh Shah, MD and CEO of Envision Capital believes that over the next 3-5 years, the Indian market will give more than 100 percent returns. “Today we are at 7,500-7,800, is there a chance that we could be at 13,000-15,000 Nifty in the next three-four years? The answer is yes. So what are we saying is that there is a downside of maybe 500 points on the downside but maybe there is an upside of 3,000-4,000 points on the Nifty,” he told CNBC-TV18.
Globally, shares across Asia were sharply higher today. The Japanese Nikkei surged by 7.7 percent which is biggest one-day jump in seven years. Sentiment was boosted after Prime Minister Shinzo Abe pledged to implement a corporate tax cut. The Shanghai composite in China jumped 2.3 percent while the Hangseng in Hong Kong soared over 4 percent. The South Korean Kospi went home 3 percent higher.
Telecom stocks made a dashing rally with lead gainers like Bharti Airtel, Reliance Communication and Idea Cellular as the companies get more flexibility with their spectrum. The cabinet has allowed trading of airwaves with a 45-day notice and a 1 percent transaction fee.
Meanwhile, gold stocks also partied as the cabinet announced the gold monetisation scheme and gold bonds. The RBI will issue the bonds and the centre will set the interest rates from time to time. A reserve fund will be created to mitigate the risks out of price fluctuation.
Metals and autos were big gainers lending strong support to the indices. Hindalco, Vedanta, NTPC and Tata Steel were up 4-7 percent while Tata Motors was up 4 percent. Sun Pharma and GAIL were laggards in the Sensex.
Midcaps, too, were not far behind. The index was up 1.9 percent from previous close. Chennai Petro, Amtek Auto, Mcleod Russel, Welspun India and Phoenix Mills were key midcap gainers.