Mumbai: Buying in metal, auto and consumer durable shares on Monday helped benchmark Sensex rally for the second straight session and notch up a gain of 154 points to end at 27,395.73, amid firm global cues and renewed buying by foreign funds.
Markets were also boosted by optimism on the growth front while buzz that the government will use the ordinance route to push more economic reforms provided support, brokers said.
Buying was seen across-the-board as 11 out of 12 sectoral indices closed with gains while only BSE banking sectoral index finishing with minor losses.
Smart rise in Tata Motors, HDFC, RIL, ITC, TCS, Sesa Sterlite, Sun Pharma, Hero MotoCorp, Hindalco and HUL mainly supported the Sensex rise.
Economic growth is expected to pick up in the current fiscal and will be "much better" in 2015-16, Finance Minister Arun Jaitley today said in New Delhi. The Indian economy grew by 5.3 percent in the September quarter from a year earlier, and is expected to grow 5.5 percent in the year that ends on March 31, 2015.
The BSE 30-share gauge resumed better and remained in positive throughout the day to log a high of 27,507.25 before concluding at 27,395.73, a rise of 153.95 points or 0.57 percent. On Friday, it had inched up by 33.17 points.
The 50-issue CNX Nifty of the NSE also improved further by 45.60 points, or 0.56 percent, to 8,246.30.
"Firm global cues and ...Continuous inflow from the FIIs, added to the positivity," said Jayant Manglik, President - Retail distribution, Religare Securities.
After 12 days of heavy sell-off since December 9, FPIs bought shares worth Rs 39.97 crore last Friday as per provisional data with bourses. This cheered participants.
Second-line stocks attracted good buying interest from retail investors as the year draws to a close.
Asian stocks ended mixed as indices in China, Hongkong, Singapore and Taiwan moved up by 0.74 percent to 1.82 percent while Japan and South Korea declined by 0.50 percent 1.04 percent respectively.
European stocks were also trading narrowly mixed as indices in France and Germany moved down by 0.09 percent and 0.80 percent while UK's FTSE was quoting 0.17 percent up.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Local Indian equities traded strong for the day with the help of front-line stocks. However, market trimmed some of its gain as the day progressed due to profit booking...."
Twenty-five scrips out of the 30-share Sensex pack ended higher while only five finished lower.
Major Sensex gainers were Sesa Sterlite (3.81 percent), Hindalco (3.22 percent), Coal India (2.22 percent), Tata Motors (2.04 percent), Hero Motocorp (1,86 percent), Tata Steel (1.54 percent) and Gail India (1.15 percent).
Sun Pharma (1.12 percent), BHEL (1.09 percent), HUL (1.02 percent), Reliance Industries (0.90 percent), HDFC (0.87 percent), TCS (0.77 percent) and ONGC (0.73 percent) also logged smart gains.
Among the S&P BSE sectoral indices, Metal rose by 2.36 percent, followed by Auto 1.50 percent, Consumer Durables 1.02 percent, Healthcare 0.87 percent, FMCG 0.77 percent, Power 0.76 percent, Oil&Gas 0.69 percent and IT 0.68 percent.
The BSE Small-cap and Mid-cap indices gained 0.53 percent and 0.87 percent respectively.
The total market breadth was positive as 1,617 stocks finished with gains while 1,307 stocks closed with losses and ruled steady at 112. The total turnover rose to Rs 2,260.96 crore from Rs 1,962.24 crore on last Friday.
