Market benchmark Sensex surged by 401 points to snap three straight weekly losses as investors built fresh long positions in the new derivatives series amid a firming global trend after Bank of Japan adopted a negative interest rate policy.
On a weekly basis, the Sensex recovered 435.03 points or 1.78 per cent and the NSE Nifty rose 141.10 points or 1.90 per cent to log first weekly gain this year.
Interestingly, since January 29, 2015 -- when the BSE Sensex had hit its all-time of 29,681.77 -- the index has lost 4,811.08 points or 16.21 per cent.
“Market welcomed the February series on a firm note led by strong global cues and rebound in crude oil prices. Further, Bank of Japan negative interest rate policy and strong rupee has also cheered the sentiment of the investors,” said Gaurav Jain Director of Hem Securities.
Covering up of positions by speculators, fearing a further run-up in coming sessions, also helped the key indices rise.
The 30-stock index after opening in negative zone at 24,347.31 quickly staged a comeback and rallied to hit the session’s high of 24,911.90 on across-the-board buying, tracking positive Asian cues and building-up of bets following the beginning of the February derivatives series.
Finally, the gauge settled 401.12 points or 1.64 per cent higher at 24,870.69.
The index had shed 22.82 points in the choppy session yesterday.
NSE Nifty reclaimed the 7,500-mark to hit a high of 7,575.65 intra-day, before closing at 7,563.55, up 138.90 points, or 1.87 per cent.
Top gainers among Sensex constituents included Coal India, Hero MotoCorp, Sun Pharma, Hindustan Unilever, Dr Reddy’s and Bajaj Auto.
A firming trend at other Asian markets, led by Japan after the Bank of Japan surprised markets by announcing a negative interest rate policy, buoyed sentiment here too.
Shanghai index rose 3.09 per cent, Hang Seng index settled 2.54 per cent higher, while Japan perked up by 2.80 per cent. Singapore, Taiwan, South Korea also surged by 2.60 per cent, 2.22 per cent and 0.27 per cent, respectively.
European indices were also trading higher in their early trade as indices in France, Germany and the UK rose by 1.09 per cent to 1.35 per cent.