Key Indian equity indices surge on positive reforms cues

New Delhi, Nov 19  Key Indian equity indices surged on Thursday as investor mood was upbeat over some key reform-oriented decisions taken by the government, as also on account of some fresh positions, following the profit-taking the day before.

Against the previous close at 25,482.52 points, the sensitive index (Sensex) of the Bombay Sock Exchange (BSE) opened at 25,640.34 points. Immediately thereafter, it was ruling at 25,633.90 points, with a gain of 151.38 points, or 0.59 percent.

At the National Stock Exchange, the broader 50-share Nifty was ruling at 7,779.85 points, with a gain of 48.05 points or 0.62 percent over the previous close at 7,731.80 points.

On Tuesday, the Sensex had lost 381.95 points or 1.48 percent, while the Nifty was also down 105.75 points or 1.35 percent, data available with the two bourses said.

"US stocks rallied on Wednesday as the minutes of the Federal Reserve's most recent meeting gave some clarity on the prospects of a December rate hike. Most of the Federal Reserve officials are open to a December rate hike," Angel Broking said in a pre-open analysis.

"The European markets ended the session with mixed results, as geo-political concerns weighed on investor sentiment. News of a bomb threat in Germany, the diversion of two Air France flights to Paris from the US, and a police raid in a Paris suburb dampened risk appetite."

In Asia, Tokyo shares opened higher on Thursday on expectations of a US interest rate hik, with Nikkei Stock Average up 1.05 percent, and broader Topix index up 0.92 percent. Chinese stocks also opened higher with the benchmark Shanghai Composite Index up 0.15 percent.

Back home, the Narendra Modi government was on overdrive on Wednesday with as many as 27 decisions taken at a single meeting, including some key ones such as divestment of equity in Coal India and an initial public offering for Cochin Shipyard.

"The major decisions of the Cabinet Committee on Economic Affairs to disinvest 10 percent stake in Coal India and make initial public offering for Cochin Shipyard send out the right signal that the Government is fast-tracking reforms," the Confederation of Indian Industry said.