Global trends lift Sensex to 17-month high



Marketmen said rising global stocks, stronger than expected second quarter earning and buying spree by foreign funds mainly bolstered the sentiment.
They said markets were upbeat also because 10.4 per cent growth in industrial production boosted investors' confidence of economy recovering steadily.
After opening stronger, the 30-share index on the Bombay Stock Exchange rose further by 204.44 points or 1.20 per cent and settled at 17,231.11, a level not seen since May
21, 2008.
The wide-based 50-issue Nifty of the National Stock Exchange ended past 5,100-mark at 5,118.20, a rise of 63.95 points or 1.27 per cent over its last close.
In their last trade on Monday also Sensex had soared by 384 points on solid IIP data and on expectations of fighting Ambani brother pathching up their differences.
The surprisingly strong trade data announced by China indicated that the global economy is improving, sending most of the Asian indices to their highs in several months.
European markets also displayed a strong trend in their early trade on rise in US stock index futures by more than one per cent on market beating earnings by world's biggest chip maker Intel Corp.

Indices from Asian like Shanghai Composite, Hang Seng, Strait Times, Kospi and Taiwan Weighted ended up by about 1.2 per cent and 2.0 per cent. Only, Nikkei closed in the red.
Metal, capital goods and auto counters were at the forefront with hectic buying, mainly supporting the Sensex rise.
Metal shares evoked a good response on the back of firm trend in London Metal Exchange (LME) and China. Auto stocks attracted good buying support on the ongoing festive season.
The BSE-Metal index flared up by 780.29 points or 5.27 per cent, the BSE-CG by 329.26 points or 2.38 per cent and the BSE-Auto by 149.13 points or 2.28 per cent.
Besides BSE-Tech that ended in the red following fall in telecom counters, all other sectoral indices ended with gains between 0.47 per cent and 5.27 per cent.
From sensex, M&M spurted by 6.12 per cent, Sterlite Ind by 5.38 per cent, Hindalco by 5.04 per cent, Jaipra Asso by 5.01 per cent, Tata Steel by 4.69 per cent, SBI by 4.46 per cent, Tata Motors by 4.07 per cent and BHEL by 3.07 per cent.
However, REL Com declined by 6.54 per cent, Bharti Airtel by 3.25 per cent and REL Infra by 2.59 per cent.
The market breadth remained strong as 1,685 stocks ended with gains against 1,075 that finished with losses on the BSE.
The trading volume shot up to Rs 6,895.34 crore from Rs 5,284.64 crore on Monday. Sesa Goa topped the list of highest traded securities with a turnover of Rs 316.25 crore.

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