Biggest single day gain in Sensex since 31 Oct 2008

Key benchmark indices settled near day's high, striking 7-month highs, mirroring strong global cues. The barometer index BSE Sensex gained 731.50 points, or 6.41%, outperforming its global peers. Strong domestic and global economic data and aggressive build-up of fresh derivatives positions in May 2009 series triggered a solid rally on the bourses today, 4 May 2009. The barometer index BSE Sensex surpassed the psychological 12,000 level. 

Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to atentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 2008. 

Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead. 

Financial stocks led gains in European markets today, 4 May 2009, on improved economic data in the euro-zone. Germany's DAX gained 1.80% and France's CAC 40 index rose 1.16%. The stock market in UK was shut for a public holiday 

The euro-zone manufacturing purchasing managers' index came in at 36.8 in April 2009, above 33.9 in March 2009. Stocks also rose as the US said swine flu has milder symptoms than the world's previous influenza outbreaks.