Sensex ends up 597 pts

The Sensex ends (provisional) at 16,445- up 597 points. Nifty ends up 174 points at 4,922.
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(Updated at 1439 hrs)

Heavyweights have continued to buoy markets higher today with Reliance and Infosys leading the upmove.

The Sensex opened with a positive gap this morning on strong cues from Asian markets. Investors also cheered as the ongoing political impasse came into an end after government gave in to the demands of anti corruption activist. The Sensex extended gains in late-noon trades on the back of buying in heavyweights and touched a high of 16,386 - up 540 points. Nifty is up 167 points at 4,916.

"In the short term the markets seem oversold, so we could see a small technical bounceback upto around 5000 levels, as and when the bounceback emerges. However, it is possible that the market continue to decline some more. Medium to long term investors should hold on to their stocks and wait to buy," said Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Securities.

Global markets rose today following US Federal Reserve Chairman, Ben Bernanke's speech at Jackson Hole on Friday. United States Federal Reserve refrained from introducing new measures to bolster the economy, but said that they would take actions to stimulate employment. The S&P 500, Nasdaq and the Dow Jones Industrial Average ended higher, over 1% each.

In Asia, Hang Seng added 1.4% to 19,865. Seoul Composite rallied 2.8% and Taiwan Weighted advanced 1.8%. However, Shanghai Composite slipped 1.3% to 2,576 on reports that People’s Bank of China has increased the amount that the banks must set aside as reserves.   

Markets will take cues from the first quarter GDP data expected on Tuesday as it will closely determine the likely action that the Reserve Bank of India will take to fight Inflation, which has remained stubbornly high around 9.8% for the week ended August 13. Economists fear that growth in the first quarter could slip below 8%.

Reliance, Infosys and ICICI Bank have together, contributed 180 points to the Sensex's upmove today. Reliance is up 4.6% at Rs 753. ICICI Bank is up 4.5% at Rs 858 and Infosys has climbed up 4% in trades.

Jindal Steel, Hindalco and Tata Steel have advanced 4-6% in the metal space. TCS is up 6% at Rs 1,009. Bajaj Auto, Larsen & Toubro, Jaiprakash Associates, Mahindra & mahindra and Tata Motors are the other top gainers in the index.

Meanwhile, Maruti Suzuki has slipped 1.3% at Rs 1,067. ONGC is down 1% at Rs 275.

BSE market breadth continues to be positive. Out of 2,820 stocks traded, 2,045 have advanced while 677 have declined in trades.