Despite slowdown in economic growth, the BSE benchmark Sensex rose 260 points today on a firm global trend as higher US consumer spending data ignited the hopes of global economic recovery.

The Bombay Stock Exchange 30-share index, Sensex, which had gained 567.50 yesterday, rose further by 260.42 points to 16,676.75. Intra-day, it touched a high of 16,714.70.

Similarly, the broad-based National Stock Exchange index Nifty rose 81.40 points to 5,001 led by metals, realty, banks and IT.

Brokers said there was good buying in fundamentally strong stocks available at lower prices following the recent meltdown and the market was completely moving on cues from the world equity markets.

They said investors’ confidence improved considerably after US consumer spending increased 0.8 per cent, the most since February. This pushed up the Asian stocks higher and led to a strong opening in Europe.

Back home, GDP growth was just 7.7 per cent for the quarter ended June 30, 2011 from 8.8 per cent in the corresponding period last year. But it did not have much impact on the market.

The Finance Minister, Mr Pranab Mukherjee, termed the growth as disappointing and said hard work was needed by all sections, including industry and farmers, to ensure inclusive growth.

The two most-heaviest, with 20 per cent weight on the Sensex — Reliance Industries and Infosys gained 3.64 per cent and 1.96 per cent.

The metals sector index gained the most, up 3.74 per cent to 12,097.10, followed by realty 3.62 per cent to 1,739.58.

The bank index rose 2.24 per cent to 10,904.24 and IT 2.08 per cent to 5,061.83.

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