The markets joined a global rally on Thursday after the world’s leading central bankers agreed to cut the cost of providing dollar funding to banks facing a liquidity crunch due to the European debt crisis. The fall in food inflation also boosted sentiment.
The Sensex gained 359.99 points, or 2.23 per cent, to close the day at 16,483.45 points after climbing as much as 595 points in intra-day trade.
The Nifty rose 2.17 per cent, or 104.80 points, to close at 4,936.85. A move by the People’s Bank of China to cut the Cash Reserve Ratio (CRR) requirement for banks, the first time since 2008, held out hope that the RBI would do the same.
FIIs, who sold equities worth `4,197.90 crore during November, turned net buyers on Thursday to the tune of `687.26 crore.