By RTT News,
December 20, 2013, 07:12:00 AM EDT
(RTTNews.com) - Investors took the Federal Reserve's decision to trim its stimulus efforts in their stride, lifting the key benchmark indexes to over one-week highs. Foreign institutional investors remained net buyers and bought shares worth a net Rs 2232.20 crore yesterday, provisional data showed, easing investor apprehensions over capital outflows.
Capital market regulator SEBI said it has loosened the trading criteria on illiquid stocks, helping boost sentiment further. The benchmark BSE Sensex climbed 371.10 points or 1.79 percent to 21,079.72, while the broader Nifty index closed at 6,274.25, up 107.60 points or 1.74 percent from its previous close.
Market heavyweight Reliance Industries soared 4.8 percent after the Cabinet Committee on Economic Affairs approved giving the company a higher gas price from next April, in return for a $135 million bank guarantee.
IT stocks like Infosys, TCS and Wipro rose 1-4 percent after Accenture reported forecast-beating first-quarter results and said its consulting business will turn the corner this financial year.
Financials and automakers also posted strong gains, buoyed by the RBI's decision on Wednesday to keep interest rates unchanged. Tata Motors, HDFC Bank, Bajaj Auto, Hero MotoCorp, ICICI Bank and HDFC advanced 1-3 percent.
On the global front, the Asian markets fluctuated before closing mixed, as investors reassessed the impact of the Federal Reserve's decision to taper its stimulus program on interest rates and capital flows. A flat close on Wall Street overnight and concerns about tight liquidity conditions in China rendered investor mood somewhat cautious.
The European markets traded higher in early trading, although the gains remained muted following the previous session's rally.
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