ECB breathes new life into world stocks; Sensex soars 337 pts

ECB breathes new life into world stocks; Sensex soars 337 pts

ECB breathes new life into world stocks; Sensex soars 337 pts

 Key benchmark indices, on Friday, surged to end over 2 per cent higher aided by the rally in global markets after the European Central Bank (ECB) announced a new bond buying programme called Outright Monetary Transactions — including unlimited purchases of bonds with a period of 1-3 years.

Though the negative part of the bond programme was the ECB cutting growth forecast for 2012 and 2013, the market ignored the same. Even as the market breadth was strong, all the sectoral indices in BSE were in green.

BSE capital goods index jumped 3 per cent, followed by metal, realty, bankex and auto up 2 per cent, while consumer durables and oil & gas indices were up 1.8 per cent each.

The popular Sensex at BSE surged over 337 points, the biggest single day gain in two months, after it was off to a rollicking start on Friday tracking overnigth gains in US stocks and early Asian cues.

The market sentiment was boosted by data showing that foreign institutional investors (FIIs) were net buyers of Indian stocks on Thursday. FIIs bought shares worth net Rs 137 crore from the secondary equity markets on Thursday  as per data from Securities & Exchange Board of India (Sebi).

Asian markets soared after the European Central Bank outlined its bond buying scheme in an attempt to draw a line under the region's debt crisis. Stronger-than-expected jobs data from US private sector, which bode well for the key US non-farm payroll figures due out on Friday, also encouraged investors to cover their bearish bets.

Nikkei added 2.2 per cent, Shanghai Composite soared 3.7 per cent and Hang Seng jumped 3.7 per cent respectively. The BSE Sensex jumped 337.46 points or 1.95 percent to settle at 17,683.73, its highest closing level since August 24, 2012. It jumped 354.93 points at the day's high in late trade and rose 229.52 points at the day's low in opening trade.

The 50-unit S&P CNX Nifty at NSE jumped 103.70 points or 1.98 per cent to settle at 5,342.10, its highest closing level since August 27, 2012. The index hit a high of 5,347.15 and a low of 5,309.20 in intraday trade.