Sensex up 3.4% as optimism returns

Receding concerns over the monsoon and positive global cues lifted stock market indices on Tuesday. The bellwether Sensitive Index, or Sensex, of the Bombay Stock Exchange surged 453 points, or 3.4 per cent, to 13,853 — its highest since May 27. The S&P CNX Nifty of the National Stock Exchange rose 3.5 per cent to 4,111.

The Indian Meteorological Department said the northwest region, the country’s biggest producer of rice, wheat and sugarcane, will receive rain and thundershowers over the next 48 hours.

“The cues were positive from global markets. Market analysts were anticipating good second quarter results from Goldman Sachs,” said Amitabh Chakraborty, head (equities), Religare Securities.

Bank of America and J P Morgan Chase are also going to declare their results during the week.

The US markets closed in the green yesterday. The Dow Jones Industrial Average and Nasdaq rose by 2.27 and 2.12 per cent, respectively. Even the Asian markets were up.

“This rally was expected as markets were oversold for some time. Given the sharp fall, a 5-10 per cent rally cannot be ruled out,” said First Global Managing Director Shankar Sharma.

The overall market breath was positive, with 3,035 stocks up, 782 down, and 91 unchanged. The realty index led the rally, rising 9.38 per cent, followed by metal and consumer durables.