Sensex rallies over 358 pts on all-round buying

Mumbai, Feb 3 (PTI) In a strong pull-back rally, the
benchmark Sensex on Thursday spurted for the second day,
closing over 358 points up at 18,449.31 -- biggest single day
gain this year -- on across-the-board buying led by realty,
capital goods, metal and banking segments.
Investors shrugged off inflation and high interest rate
worries on indications from US and Europe that global economic
recovery was taking hold.
Marketmen said the rally was triggered by hectic short-
coverings at lower levels amid domestic funds buying despite a
spurt in food inflation and sustained capital outflows in the
absence of firm direction from overseas markets.
The Bombay Stock Exchange 30-share barometer, few minutes
after the onset of business, touched a low of 18,064.61 before
bouncing back to settle the day at 18,449.31, a sharp rise of
358.69 points or 1.98 per cent. On Wednesday, it was up by
68.40 points or 0.38 per cent.
Similarly, the NSE 50-issue Nifty shot up 94.75 points or
1.74 per cent to 5,526.75.
Smart rise in heavyweights like RIL, L&T, ICICI Bank,
SBI, Bharti Airtel, Tata Motors, HDFC Bank, Infosys Tech,
Hindalco, BHEL, HDFC, Tata Steel and DLF contributed to the
Sensex rise enormously.
Indian Finance Minister Pranab Mukherjee on Wednesday
said that stock markets had seen volatility over the past few
days due to selling pressure from Foreign Institutional
Investors (FIIs) but the government expected 8.5 per cent
economic growth this fiscal.