Sensex rallies 305 points on global cues


Mumbai: A benchmark index for Indian equities Monday closed 305 points up in a broad-based rally, with metals and realty scrips seeing substantial buys on positive cues from global markets which rose after China said it will move towards a flexible currency.

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Investor sentiments also turned positive with the end of the regulatory dispute over unit-linked plans (ULIP) and as fears eased over Euro zone’s sovereign debt problems.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,654.81 points, shut shop at 17,876.55 points, 305.73 points or 1.74 percent up from its previous close at 17,570.82 points.

It had touched an intra-day high of 17,919.62 points, up 348.8 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling at 5,353.3 points, up 1.72 percent from its previous close at 5,262.6 points.

Broader markets indices were also in the positive, with the BSE midcap index ending 1.29 percent higher and the BSE smallcap index 1.21 percent up.

Metals, realty and banking scrips were among the major gainers and all the 13 sectoral indices on the BSE were in the green.

Asian markets saw more broad-based buying after China said it would make the Yuan, which has been pegged to the US dollar, more flexible, bringing relief to foreign manufacturers. Metal scrips rose in tandem with increasing prices of such commodities across the globe.

The Japanese Nikkei ended at 10,238.01 points, up 2.43 percent, while the South Korean Kospi closed at 1,739.68 points, 1.62 percent higher.

Hong Kong’s Hang Seng built on morning gains and closed 3.08 percent higher at 20,912.18 points, while the Chinese Shanghai composite index was up 2.9 percent up at 2,586.21 points.

European markets rose for the ninth day as traders gained confidence in the global economic recovery.

UK’s benchmark index, the FTSE 100 was ruling 1.06 percent higher at 5,306.39 points, while the French CAC 40 was up 1.65 percent at 3,748.11 points.

The German DAX was also among gains, trading 1.45 percent higher at 6,306.91 points.