Market update: Sensex closes 146 points up at over one-week high, Nifty reclaims 7,900 on reforms

The benchmark Bombay Stock Exchange (BSE) index Sensex surged 146 points to end at an over one-week high of 26,575.65, rising for the third straight session, and the NSE Nifty jumped 48 points to regain the 7,900-mark led by power, metal and banking stocks after government laid a broad roadmap for coal mine allocation.

In line with government's initiatives, stocks of Jindal Steel Power (JSPL), Hindalco, Tata Steel and Sesa Sterlite attracted good buying and surged up to 7.46 per cent, pushing the Sensex up.

Besides, revival of buying by foreign funds after remaining net sellers on the Indian bourses for some time was another positive factor driving up markets, brokers said.

The 30-share BSE barometer, after shuttling between 26,615.41 and 26,407.00 intra-day, gathered another 145.80 points (or 0.55 per cent), to close at 26,575.65, its highest closing since 26,637.28 on October 9.

The Sensex has rallied by over 576 points in 3 days.

Meanwhile, the broader 50-issue National Stock Exchange (NSE) Nifty, reclaimed the key 7,900-mark by surging 48.35 points (or 0.61 per cent), to close at 7,927.75. Intra-day, the NSE index shuttled between 7,936.60 and 7,874.35.

After announcing diesel deregulation and new gas prices last week, the Narendra Modi government on Monday cleared the Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs. The move comes against the backdrop of Supreme Court's September verdict quashing allocation of 214 coal blocks to various companies since 1993.

"Revival of buying by foreign funds, helped pre-Diwali rally to gather further momentum", said Deepak Pahwa, a stock broker based in the national capital.

Among the 30-Sensex scrips, 22 ended higher, while 8 shares ended lower led by Coal India (CIL), ONGC, Reliance Industries (RIL) and Infosys.

In broader markets, shares of Financial Technologies (FTIL) tumbled 20 per cent after the government ordered merger of crisis-ridden NSEL with holding firm, FTIL.

Sectorwise, the BSE Realty index gained the most by rising 2.63 per cent, followed by Power (2.55 per cent), Metal (1.71 per cent), Capital Goods (1.38 per cent), Banking (1.2 per cent) and Consumer Durables (1.18 per cent) among others.

Globally, mixed closing on other Asian markets and higher opening in Europe, also influenced trading sentiments.

Meanwhile, provisional data released by the bourses showed that Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 1,040.08 crore on Monday.