Sensex, Nifty gain over 2% at close

The Sensex for the second day ended sharply higher on intense buying seen across board. Power, capital goods, consumer durables and banking sectors were also the major drivers which supported the rally.

Asian stocks rose, as commodity prices climbed and consumer prices fell in China, making it easier for the government to maintain low interest rates. Japanese benchmark index Nikkei gained 204.67 points, or 2.09%, to end at 9,991.49.Hong Kong`s Hang Seng index advanced 727.17 points, or 4.03%, to close at 18,785.66 and China`s Shanghai Composite climbed 28.36 points, or 1.02%, to settle at 2,816.25.

The benchmark index, Sensex opened with a gain of 41.18 points, at 15,168.18 on Wednesday on positive global cues and continued to trade firm. Later it gained strength in the mid-session, hitting a one year high by breaching the mark of 15,500. The markets extended its gains after the Prime Minister`s comments that economic growth could bounce back to 9% boosted sentiments and encouraging Asian markets. However, it pared some of its gains as profit booking sets in, touching a low of 15,168.18 to finally close on a strong note.

BSE Midcap and Smallcap index rose 1.59% and 0.34% respectively.

Among the sectoral indices, BSE Power and Capital goods surged over 3% each, Bankex, Metal and Consumer durables rose over 2% each, Oil & gas, Auto and IT moved up over 1% each, while Realty dipped 1.14%.

European stocks advance, led by raw material producers as metals and oil prices rallied. UK`s benchmark index FTSE 100 gained 92.78 points, or 2.11%, to trade at 4,497.89, French benchmark index CAC 40 advanced 67.70 points, or 2.05%, to trade at 3,364.43 and Germany`s benchmark index DAX climbed 121.70 points, or 2.43%, to trade at 5,119.55 (4.10 p.m., IST)

The Sensex ended the day with a gain of 339.81 points, or 2.25% at 15,466.81 after touching a high of 15,580.81 and a low of 15,168.18. The broad-based NSE Nifty gained 104.30 points, or 2.29% at 4,655.25 after hitting a high of 4,688.95 and a low of 4,551.70.

Major gainers in the 30-share index were Tata Power Company (6.43%), Reliance Infrastructure (5.99%), HDFC Bank (5.56%), Ranbaxy Laboratories (5.44%), ACC (5.40%), and Reliance Communications (5.30%).

On the other hand, Tata Motors (1.95%), DLF (1.71%), Sun Pharmaceutical Industries (0.83%), State Bank Of India(0.37%), Housing Development Finance Corporation (0.23%), and Jaiprakash Associates (0.20%) were the major losers in the Sensex.

Overall market breadth was negative. Out of the total 2,831 stocks traded at BSE, 1,218 advanced, 1,553 declined while 60 remained unchanged.