New Delhi: With the fear of recession in America reducing, the stock markets around the world started booming. Its effect was also seen on the Indian stock market. On the last trading day of the week, the BSE Sensex rose by about 2 percent. This led to a huge increase of Rs 7.30 lakh crore in the wealth of investors.

The best day of the two months

The 30-share BSE benchmark closed 1,330.96 points, or 1.68 per cent, higher at 80,436.84. This was the Sensex's best day in the last two months. The market cap of BSE-listed firms rose by Rs 7,30,389.86 crore to Rs 4,51,59,833.55 crore, or $5.38 trillion.

Among Sensex firms, Tech Mahindra, Tata Motors, Mahindra & Mahindra, Tata Consultancy Services, HCL Technologies, UltraTech Cement, Tata Steel and ITC were the top gainers. Only Sun Pharma closed in the red. Indian investors used the previous day's decline as a buying opportunity and bought banking, IT, auto, metal and realty stocks heavily.

What was the reason for the rise in Sensex?

Prashant Tapase, Senior VP (Research), Mehta Equities Limited, said, 'Positive data like reduction in inflation and increase in retail sales came from America. These dispelled the fears of recession. The reduction in inflation also strengthened the discussion that the US central bank may reduce interest rates early next month. This paved the way for a tremendous rise in stocks across the world.'

Vinod Nair, Head of Research at Geojit Financial Services, said, "Market sentiment has improved due to the decline in US CPI inflation. This led to strong buying in Indian IT firms." Talking about the overall market, the BSE midcap gauge rose 1.80 percent and the smallcap index rose 1.70 percent. All the indices closed with gains. A total of 2,462 stocks rose and 1,467 fell on the BSE. At the same time, there was no change in 107.