Positive European markets and hopes of P Chidambaram pushing the reforms process forward, fuelled a fresh rally on the bourses. The S&P CNX Nifty rallied 54 points to close the day at 5336 points, while the Sensex closed the day higher by 188 points.
The rally was across the board, with rate sensitives, including Tata Motors and State Bank of India rallying sharply. State Bank of India rallied more than 2% ahead of its results, which are to be declared on August 10. Among the star performers in trade, however, was Tata Motors which surged more than 4%. The company is set to declares its results on August 9.
Shares of Infosys gained sharply today, on spectacular results posted by Cognizant, building renewed optimism for the IT sector.
The only stocks that were laggards in trade today amongst the Sensex stocks was Hero MotorCorp and Bharti Airtel.
Among non index stocks, shares of Punjab Chemicals rallied smartly after the company got an approval for CDR from RBI. The stock surged more than 11% in trade following the approval. Seamec shares rose more than 8% after reports that the company got USD 18 million contract from Leighton Welspun Contractors.
Meanwhile, shares in Europe were trading higher, while shares in Asia closed mix. Markets are expected to continue to take cues from around the globe, which should largely determine the trend of the markets in the short term.