Markets end positive, Sensex up 17 pts

The Sensex closed at 16,823 up by 17 points and the Nifty ended at 5,045, up by 6 points. (provisional closing)

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(Updated at 1421hrs)

Markets gained momentum in afternoon trades tracking gains in Europe with the Sensex topping the 17,000 mark.

Key European indices, London’s FTSE-100 was up 0.7%, Germany’s DAX was up 1.4% and Paris CAC-40 was up 1.6% on hopes that the European leaders would arrive at a solution to the debt crisis in the region.

In the domestic market the Sensex was up 180 points at 16,986 and the Nifty was up 58 points at 5,098.

Gains were led by oil, technology, metals and financial shares.

Oil shares were led by index heavyweight Reliance Industries up 0.5% and ONGC which rose 1.2%.

Technology shares rose on the back of weakening rupee and hopes that business environment in Europe post the summit on December 9.

Wipro and Infosys were both up 2% each.

Metal shares rose after global credit agency Standard and Poor announced a stable rating outlook on China, the world’s largest consumer of copper and aluminium.

Hindalco and Sterlite Industries were both up over 2 per cent each.

Financial shares rose on expectation that the Reserve Bank of India may pause interest rate hike after government data last week showed that food inflation had moderated.

State Bank of India was up 1.9% and HDFC was up 1.4%.

Among other shares, UltraTech Cement was up 2% at Rs 1,212. after reporting 16% year-on-year growth in dispatches to 3.09 million for November 2011.