Pay panel recommendations cheer markets; Sensex up 190 points

Prospects of growth in consumption-led demand, after a key panel recommended major salary and pension hike for central government employees buoyed Indian equity markets during the mid-afternoon trade session on Friday.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose 190 points or 0.73 percent during mid-afternoon session, a day after the 7th Pay Commission recommended a 16 percent hike in salary and 24 percent raise in pension for central government employees.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made healthy gains during the mid-afternoon session. It was higher by 57 points or 0.73 percent at 7,899.65 points.

The S&P BSE Sensex, which opened at 25,856.13 points, was trading at 26,031.64 points (1.30 p.m.), up 189.72 points or 0.73 percent from the previous day's close at 25,841.92 points.

The Sensex so far has touched a high of 26,058.76 points and a low of 25,769.81 points during the intra-day trade.