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Sensex continues above 19,000, up 408 points

Having surged past the psychological 19,000-level in early trade, the 30-share Sensex was up by over 400 points at mid-session. Nifty, too, crossed the 5,700-level.

twitter-logoPTI | September 13, 2010 | Updated 18:33 IST

The Bombay Stock Exchange benchmark Sensex surged over 400 points, past the psychological 19,000-mark on Monday after a gap of 32 months. The market was driven by banking, refinery and metal stocks, as investors bet big on sustained economic growth.

Amid firm global cues, the 30-share index, which had gained 133 points in the previous session, spurted by 408.67 points, or 2.17 per cent, to 19,208.33, a level last seen in January 2008.

Similarly, the broad-based National Stock Exchange Nifty also breached the 5,700-level by adding 119.95 points, or 2.13 per cent, to 5,760.

The investor sentiment was upbeat after industrial output grew at a faster rate than expected, signalling all-round economic expansion. A rise in Asian stock markets, led by Japan's Nikkei, and a high opening in Europe, also helped the boost the market.

A surge in China's industrial output boosted optimism that the global recovery is on a sure-footing, propelling domestic equity markets as well.

Besides, banking, refinery, realty sectors and capital goods stocks were in demand, following reports that factory output increased 13.8 per cent in July from the year-ago period.

The banking sector index gained 3.62 per cent, to 13,454.56, as segment major and state-run State Bank of India rose Rs 164.75, to Rs 3,147.25, and private mortage firm HDFC Ltd Rs 33.55, to Rs 664.15, on expectations that growth of the economy would raise demand for loans.

The oil and gas sector index was the second-best performer, rising 2.57 per cent to 10,436.47, as market heavyweight Reliance Industries shot up Rs 34.25, to Rs 992.20, following reports that the company has completed the acquisition of a 60 per cent stake in the Marcellus Shale gas asset in the US.

With the general rising trend, the mid cap sector index gained 0.77 per cent to 8,112.37 and the small cap index rose 0.22 per cent to 10,271.

Other major gainers of the day included Infosys, which rose 1.5 per cent, Tata Steel (up 1.34 per cent) and L&T (up 1.12 per cent).

Fuelled by the company's plans to make a joint bid with Petrovietnam for British Petroleum's (BP) Vietnam assets, ONGC ended 1.5 per cent higher.

In the BSE-30 pack, 26 stocks ended with gains, while 4 scrips lagged behind and settled in the red.

Wipro led the losers pack and ended 1.27 per cent lower, while RCom was down 0.43 per cent, Hero Honda 0.28 per cent and Bharti Airtel 0.17 per cent.

Almost all the major indices across the world were in the green. In Asia, China's benchmark Shanghai index rose nearly 1 per cent and Japan's Nikkei 0.89 per cent. Europe, too, was trading higher at mid-session.

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