Sensex, Nifty jump nearly 2% to hit over two-week highs on rally in global peers

Benchmark Sensex spurted by 1,330 points to close at a more than two-week high while Nifty rallied 397 points to settle above the 24,500 level following buying in IT shares and Reliance Industries and a sharp global stocks rally.

The 30-share BSE Sensex jumped 1,330.96 points or 1.68% to settle at 80,436.84, marking its best single-day gains in more than two months. During the day, it zoomed 1,412.33 points or 1.78% to 80,518.21.

The NSE Nifty surged 397.40 points or 1.65% to close at a two-week high of 24,541.15.

From Sensex firms, Tech Mahindra, Mahindra & Mahindra, Tata Motors, UltraTech Cement, Tata Consultancy Services, HCL Technologies, ICICI Bank, and Tata Steel were the biggest gainers.

Sun Pharma emerged as the only laggard.

All the sectoral indices closed in green. BSE Midcap spurted by 1.8% while smallcap index rose by 1.7%.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong settled significantly higher. European markets were trading mostly in the green. The US markets ended with sharp gains on Thursday.

"The stability of the JPY has been instrumental in driving a global market recovery. Besides that, the strong US retail sales and a decline in weekly jobless claims have helped alleviate fears of a US recession.

“Further, the market sentiment has improved due to a decrease in US CPI inflation. On the backdrop of these, the Indian IT firms exhibited strong buying interest," said Vinod Nair, Head of Research, Geojit Financial Services.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,595.27 crore on Wednesday, while Domestic Institutional Investors (DIIs) were buyers as they bought equities worth Rs 2,236.21 crore, according to exchange data.

Global oil benchmark Brent crude declined 1.22% to $80.05 a barrel.

Indian stock markets were closed on Thursday on account of Independence Day.

The BSE benchmark climbed 149.85 points or 0.19% to settle at 79,105.88 on Wednesday. The NSE Nifty ended marginally up by 4.75 points or 0.02% at 24,143.75.