Sensex surges 185 points; L&T biggest gainer at 4%

The Sensex on Friday rose nearly 185 points as higher earnings by Larsen & Toubro (L&T) and Tata Power and firming European markets boosted investor confidence.

The 30-share Bombay Stock Exchange benchmark shuttled in the range of 18,429.47 and 18,161.38 before closing at 18,326.09, up 184.69 points. The broad-based National Stock Exchange index Nifty also rose 58.25 points to 5,486.35.

Market analysts said a firming start in European stocks preceded by a upswing in the US markets on Thursday bolstered the trading sentiment.

The capital goods sector index gained the most by 2.31 per cent to 13,195.16, as L&T stocks surged 3.57 per cent, extending Thursday's 5.8 per cent jump. Brokers said L&T attracted good buying support after the company reported handsome quarterly and yearly earnings.

Tata Power was another leading gainer at 1.67 per cent.

Pharma major Wockhardt also rose 5.66 per cent after it turned to a profit quarter ended March 31 from losses a year-ago.

Blue-chips Reliance Industries and Infosys Technologies ended the day higher. RIL rose 0.71 per cent and Infosys 0.15 per cent.

Recently bashed auto, healthcare, power, realty, metal and banking counter also saw some buying activity. Analysts said falling commodity prices easing inflationary encouraged institutional investors to turn to stocks.

The US crude oil and and six industrial metal on the London Metal Exchange sank up to 1.7 per cent on Thursday.

The two-day surge is a breather for investors after a series of downfalls recently. The bellwether index has lost over 11 per cent this calender year over concerns that an unrelenting inflation and higher borrowing costs will hurt corporate earnings.