Sensex Rallies Over 700 Points; Tata Group Shares Rally On Top Court's Order

Shares of Tata Group companies rallied after the Supreme Court backed the removal of Cyrus Mistry as the chairman of Tata Sons.

The Indian equity benchmarks extended gains in afternoon trading led by gains in HDFC, HDFC Bank, Infosys, Hindustan Unilever, ICICI Bank, Tata Consultancy Services and Asian Paints. The Sensex rallied as much as 795 points and Nifty 50 index moved above its important psychological level of 14,550. The markets bounced back after two days of steep losses on account of short-covering as they entered into oversold zone, analysts said. As of 12:53 pm, the Sensex climbed 751 points to 49,191 and Nifty 50 index advanced 234 points to 14,559. "We expect Nifty to trade in range of 14,400-14,750 for short period of time. Break above the level of 14,750 can increase the momentum and raise chances of the index moving higher," Gaurav Garg, head of research at CapitalVia Global Research told NDTV. Shares of Tata Group companies rallied after the Supreme Court backed the removal of Cyrus Mistry as the chairman of the over $100 billion salt-to-software Tata Group in 2016 and set aside the company law tribunal order that had reinstated him. Tata Steel was top gainer among Tata Group companies, the stock rallied over 6 per cent.