Recovering from its early morning plunge, BSE Sensex today soared 241 points as the government unleashed a new wave of FDI reforms and Brexit worries eased while hectic buying by institutions and talking-up by influential marketmen helped counter Rexit jitters.


The rupee trimming its initial losses against the American currency too supported the rebound in equities. Sentiment got a further boost after global rating agency Fitch allayed concerns of any impact on India's sovereign ratings due to RBI Governor Raghuram Rajan's decision against a second term saying "policies are more important than personalities" on this front.

Meanwhile, the Reserve Bank of India bought government's securities worth Rs 10,000 crore via OMO purchase auction held today, while the total amount offered by participants stood at Rs 45,922 crore.


In sweeping reforms, the government has decided to ease Foreign Direct Investment (FDI) norms in civil aviation, single-brand retail, defence and pharma by permitting more investments under automatic route.


The BSE Sensex lost 178 points in early trade to hit a low of 26,447.88 on Rajan's announcement. However, hectic buying thereafter helped the index return to the positive zone within minutes as it settled 241.01 points or 0.91 per cent higher at 26,866.92. Overall, the market swung in a range of 437 points during the day.