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Shrugging of high inflation and a four-day declining trend, the BSE benchmark Sensex today rose 43 points to 18,308.66 on emergence of buying in banking and capital good stocks amid a firming global trend.
The Bombay Stock Exchange’s 30-share index, Sensex, which had lost 228 points in the last four sessions, opened firm and recovered by 42.663 points. The broad-based National Stock Exchange index Nifty rose 17.7 points to 5,500.50.
Brokers said the market was moving on positive global cues, shrugging of year-on-year inflation data for May 2011, which at 9.06 per cent is less than 10.48 per cent recorded in May 2010.
However, it has broken away from the downward trend of the last few months this calendar year. In April, the inflation was recorded at 8.66 per cent.
Market analysts said investors bought fundamentally sound stocks across the board to benefit from the existing lower level prices.
A firming trend in the Asian markets and higher opening in Europe fuelled the uptrend. The MSCI Asia Pacific Index climbed 1.1 per cent after a Chinese industrial production report raised optimism that the economy may grow amid government measures to curb inflation.
On the BSE, the capital goods sector index gained the most, rising by 1.03 per cent to 13,493.67 as infrastructure major Larsen and Toubro climbed to a five-month high.
Banking sector index gained 0.83 per cent as ICICI Bank, the second-biggest private lender rose Rs 15.85 to Rs 1,055.20 and SBI Rs 13.85 to Rs 2,233.95.
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