Mumbai: Indian shares surged nearly 2 per cent on Thursday, heading for their third session of gains, as Larsen & Toubro surged after upbeat March-quarter results, raising hopes about the domestic economy.
Domestic sentiment was buoyed as oil advanced to $50 a barrel for the first time this year as US industry data showed a decline in stockpile. The G7 summit in Japan to take stock of the global economy also infused a sense of confidence.
Short-covering by participants with today being the last trading session of May series of derivative contracts supported the upmove.
At 3.00 p.m., the 30-share BSE index Sensex was up 455.01 points or 1.76 per cent at 26,336.18 and the 50-shre NSE index Nifty was up 119.45 points or 1.51 per cent at 8,054.35.
Barring healthcare, all other BSE sectoral indices were trading in the green. Among them, capital goods index gained the most by 8.64 per cent, banking 2.14 per cent, infrastructure 1.93 per cent and realty 1.59 per cent, while healthcare index was up 0.06 per cent.
Capital goods index surged as the Modi government approved the country’s first ‘National Capital Goods Policy’, which seeks to treble the production of capital goods in 10 years to ₹7,50,000 crore and raise employment in the sector almost four times to 30 million.