Markets close on a cheerful note on FII buying, global cues

Domestic equities closed Thursday trade with spectacular gains on the back of renewed buying by FIIs and domestic investors. Firm global cues supplemented this trend as investors factored in an extension of quantitative easing programme by European Central Bank in its meeting to be held later today.

The 30-share index Sensex, which rallied around 500 points intraday, closed at a nearly month high figure of 26,694 on Thursday, up 1.74 percent. Similarly, the 50-share index Nifty was up 144.80 points (1.79 percent) to end the trade at 8246.85.

Metal stocks gained the most followed by auto, FMCG, IT and energy among others. Banking stocks also witnessed investors' interest with State Bank of India and HDFC Bank gaining around 2 percent each.

Tata Steel was the major gainer after its UK subsidiary has reached an agreement with trade unions for replacement of the existing pension plan. Share price of the company gained around 5 percent to close at Rs 431.30. Tata Motors also saw a rise in share price on the back of sound sales numbers of Jaguar Land Rover in China. Adani Ports and Bosch also gained closing the day with more than 3 percent gain. Midcap and small cap indices provided support to this overall market trend.

Among global factors, most Asian indices like Japan's Nikkei 225, Hong Kong's Hang Seng index, South Korea's Kopsi were in the green, giving support to domestic equities. Record rally of key US indices Dow Jones Industrial Average and S&P 500 also boosted sentiments.

Weakening dollar ahead of European Central Bank's meeting helped rupee to appreciate on Thursday trade. The Indian currency gained 0.43 percent to close at Rs 67.34 against dollar. Domestic brokerage firm Angel Broking said in a report that the rupee would appreciate further after markets discounted RBI's decision to maintain status quo in policy rates.

Among commodities, oil prices were steady around $50 a barrel in international market as doubts over efficacy of proposed OPEC production cuts on pricing prevailed.