Mumbai, June 24: In the biggest single day gain since March, the BSE Sensex soared 513 points today to regain the 18k mark after nine days to close at 18,241 on the back of sharp dip in global crude oil prices and firm overseas cues.
Analysts said easing crude oil prices reduced investor concerns of inflationary pressures and hike in interest rates. India imports 75 per cent of its requirement and soaring oil prices had been a nagging concern. An Empowered Group of Ministers (EGoM) is slated to meet later today to discuss fuel prices, including a possible hike in diesel and cooking gas to bridge the subsidy burden of oil companies.
Besides, analysts said, frantic short-coverings in the recently battered counters ahead of the expiry of derivatives contract next week also boosted the market sentiment.
After having gained about 177 points yesterday, the Bombay Stock Exchange 30-scrip index surged 513.19 points or 2.89 per cent to reach 18,240.68 -- the largest gain after March 1, when the Budget proposals had kicked it up over 600 points. The gauge touched today's high of 18,268.95.
The NSE 50-issue Nifty also flared 151.25 points or 2.84 per cent to end at over one-week high of 5,471.25. CNI Research Chairman Kishor Oswal said fall in oil prices have given the government option not to raise fuel prices immediately, and if they dip to about USD 85 a barrel, then there may be cut in energy prices, considerably reducing fears of inflation and high interest rate pressures.
IIFL Head of Research Amar Ambani said, “A strong bout of short-covering, coupled with a world-wide relief rally lifted the spirits in the Indian markets today. All eyes will be on the EGoM on fuel prices, which is scheduled to take place later this evening,” PTI
