Sensex at 6-week high, soars 272 points

The benchmark Sensex on Friday surged by 272 points to a six-week high of 16,949.83 points on strong hopes that central banks worldwide, including RBI, are likely take concerted steps to contain damages in case Greece exits Eurozone.

Interest rate sensitive auto, banking and realty stocks drove the key index up by 271.95 points or 1.63 per cent to log the second straight week of gains.

The market received further support on firming trend in the Asian region and higher opening in European indices that tracked a 1.2 per cent rise in American stocks on Thursday.

"Markets ended the day surprisingly strong... there were reports that central banks in the developed world are ready to help contain any negative fallout of Greek elections," said Dipen Shah, Head of Fundamental Research, Kotak Securities.

The ongoing Eurozone crisis has taken a heavy toll on markets worldwide. Investors have been anxiously awaiting the Greece polls which will be decisive for the country's future in the Eurozone. Global markets believe a Greece exit would be disastrous for the fragile recovery of the world economy.

In the 30-share Sensex, 27 scrips ended higher led by Tata Motors which rallied 5.75 per cent on Friday after suffering its biggest drop in two weeks on Thursday.

ICICI Bank, HDFC Bank and SBI closed with 1-3 per cent gains. In the auto pack, Maruti Suzuki, M&M and Hero MotoCorp ended 2.3-2.7 per cent higher. Index heavyweights ITC, Reliance and Infosys gained in the 1-1.6 per cent range.

Interest rate sensitive realty stocks also attracted buying on expectations that a cut in interest rate would boost home sales. The Reserve Bank is widely expected to cut lending rates on June 18.

"All eyes are on the Greece election outcome on Sunday which will shape the likely future of Eurozone," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.

The 50-share NSE index Nifty rose by 84.30 points, or 1.67 per cent to 5,139.05, after touching a high of 5,146.20.