Sensex gains 154 pts on US fiscal cliff deal

The 30-stock index rose 154.10 points, or 0.79 per cent, to 19,580.81. The index touched an intra-day high of 19,623.76, a highest level since April 2011 on the back of strong gains in heavyweights.

The broad-based National Stock Exchange index Nifty, which swung between 5,963.90 and 5,935.20, settled with a gain of 45.75 points, or 0.77 per cent, at 5,950.85.

Most of the Asian markets remained closed for a public holiday and did not offer any firm cues to investors, but a lower openings in Europe, capped the gains on the domestic bourses. Although volume remained thin as foreign funds remained off the market.

Brokers said sentiments turned bullish, particularly in realty metal and banking sector stocks, after US lawmakers reached an agreement to avoid fiscal cliff of wide-reaching tax hikes and deep spending cuts in the world's biggest economy.

"Retail investors accumulated stocks of metal and interest-sensitive financial sector stocks", said Manoj Choraria, a Delhi-based stock broker.

Besides, expectations of a rate cut by the Reserve Bank of India later this month, triggered buying activity, they said.

Of the 30 scrips in the BSE Sensex, 27 gained and three declined.

The BSE realty sector index gained the most by rising 2.74 per cent to 2,168.74 points with stocks of Oberoi Realty gaining 5.10 per cent to Rs 305, DLF Ltd by 2.06 per cent to Rs 235.25, Unitech Ltd by 3.71 per cent to Rs 34.90, Prestige Estate by 3.88 per cent to Rs 186.10 and HDIL by 3.10 per cent to Rs 114.90.

The BSE metal remained second best performer among sectoral indices, by rising 2.13 per cent to 11,306.57 points as Hindalco gained 2.72 per cent to Rs 134.15, Sterlite Industries by 1.89 per cent to Rs 118.85 and Tata Steel by 2.33 per cent to Rs 438.30.