Jamshedpur, India: India’s stock market hit an all time high on Thursday, after an initial selloff earlier in the day as investors struggled to cope with the fallout from the global financial crisis.
The Bombay Stock Exchange (BSE) closed down 2.15 per cent to Rs 6,636.10, its highest since March 21, according to data compiled by Bloomberg.
The benchmark Sensex index fell 1.3 per cent.
The market rally followed a sharp selloff in February, when the S&P 500 plunged 5.4 per cent in three days.
It was the biggest daily fall in the index since March 11, 2010.
The S&p has fallen more than 10 per cent this year, but on Thursday it rebounded by more than half a percentage point.
The market’s rally is the largest in five years, and it has been fuelled by a surge in Chinese equity purchases.
The benchmark Sensey has risen more than 15 per cent over the past two weeks and is up more than 6 per cent since the end of March.
The rally was sparked by an investor buying a large chunk of the S+P 500 and a slew of foreign-backed companies, as well as Indian state-owned banks and a large group of private investors.
The Dow Jones Industrial Average (DJIA) hit a record high of 23,739.84, its biggest daily gain since October 3.
The S&am index of small-cap companies surged 9.6 per cent and the Nasdaq composite rose 10.4%.
The S-group index of technology stocks rose 10 per