Mumbai, July 3: Stock markets witnessed hectic rally today on emergence of heavy buying by bull operators along with foreign institutional investors. At 3639.89 points, the sensex racked up its best close in 16 months since March 8, 2002.
The BSE-30 share sensitive index opened higher at 3616.98 and rose further to close at 3639.89, showing a smart rise of 38.50 points over the previous close of 3601.39.
The rally was led by pharma and bank scrips. In pharma counters the bull-run was spearheaded by Dr Reddy's Laboratories, Ranbaxy and Cipla. Dr Reddy’s shot up to Rs 1189.20, 9 per cent up from the previous close of Rs 1,090, Ranbaxy was up 4.7 per cent at Rs 841.50, Cipla at 788.40 was up from its previous close of Rs 779.50.
The buying in these counters came on the back of expectations that they will stand to gain immensely as the US market further opens up to generic drug exports.
Banks too were not left behind. Today’s star performer was Bank of Baroda which surged 17 per cent to Rs 133.50. HDFC was yet another prominent gainer boosted by report that the Securitisation Act will include housing finance companies. The scrip finished at Rs 417.20 from its earlier close of Rs 384.90. State Bank of India closed at Rs 399 up from the previous close of Rs 389.50.
The sentiment was also boosted by sharp rise in the Dow Jones Industrial Average and Nasdaq Composite Index which closed higher by 96.85 points and 32.5 points respectively.