Festive spirit lifts mkts; Sensex jumps 181 pts to 1-week high

The BSE benchmark index resumed in a quiet manner but gained momentum post-noon as investors pumped in fresh funds. After touching day's high of 18,806.56, the Sensex closed at 18,791.93 -- up 181.16 points or 0.97 per cent. This is the highest closing for the index since 18,804.75 on October 11.

Brokers said some short-covering activity ahead of the expiry of October contract next week amid renewed hopes of cut in interest rates by RBI in the forthcoming monetary policy meeting on October 30, also helped boost sentiment.

As many as 24 scrips in Sensex closed with gains led by Tata Power, SBI, Tata Motors, Hero MotoCorp, TCS, L&T, CIL and ICICI Bank. Gains in ITC, HDFC Bank, HDFC also helped the index move higher. Likewise, the 50-share NSE index Nifty rose by 58.45 points, or 1.03 per cent to close at 5,718.70.

Brokers said the uptrend was backed by stocks of realty, consumer durables and banking sectors on hopes that demand will pick up pace in the festival season, boosting earnings. Across the market, 1727 scrips rose while 1,125 shares fell.

"Stocks opened on a positive note following global cues as data indicated improvement in economic growth of China. Recent results from some of banking majors also triggered further buying in banks. Europe was also positive," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.

Among sectors, the Realty sector index gained the most by rising 2.58 per cent, followed by Banking index (2.09 pc), Consumer durable index (1.50 pc) and Auto index (1.4 pc).

The market also received support on firming global trends as China's economic data indicated some stabilisation in the world's second largest economy, while positive US housing data eased worries about global slowdown. Most Asian markets closed with gains in 1-2 per cent range while Europe was trading higher in afternoon deals. (MORE)