The Sensex snapped its
two-day decline and gained over 265 points on buying in fundamentally strong stocks like Reliance Industries (RIL) and Infosys Technologies, as fall in crude oil prices and lower than expected inflation improved market sentiment.
The Bombay Stock Exchange benchmark index Sensex, which had lost 295 points in the last two sessions, bounced back by 265.39 points to 18,439.48.
The broad-based National Stock Exchange index Nifty spurt 86.05 points to 5,531.50 on the back of fresh rise in the two most heaviest-weighted stocks of RIL and Infosys.
Reliance rose to two-month high, gaining Rs 26.05 at Rs 1,017.65, as lower cost of crude improved the prospects of its profitability. Infosys, the largest software exporter rose Rs 44.80 to Rs 3,099.25. The two stocks carry nearly 23 per cent weightage on the 30-stock barometer Sensex.
Inflation rose only marginally to 8.31 per cent during February from 8.23 per cent in the previous month. Brokers said it was lower than projections and reduced worries of a steep hike in interest rates that hit corporate profits.
They said crude oil declined to the lowest level in two weeks on anticipation that the earthquake in Japan will reduce demand for the time being.
Indian Oil, the largest refiner, rose Rs 4.70 to Rs 309.90, Bharat Petroleum was up Rs 23.85 to Rs 570.50 and Oil India gained Rs 9.35 to Rs 1,280.10.
The oil and gas sector index gained the most by rising 2.24 per cent to 9,936.95, followed by metal sector index' 2.01 per cent to 15,676.33 as Tata Steel rebound from a 6-month low.
The IT index rose 1.48 per cent to 6,240.78, Banking index by 1.36 per cent to 12,358.31, power index by 1.27 per cent to 2,586.58 and Teck index by 1.26 per cent to 3,642.93.
In the 30-BSE index components, 25 stocks closed with gains, four ended with losses while BHEL remained unchanged at Rs 1,974.70.
As the buying pressure spread over a wide front, the midcap index rose 0.49 per cent to 6,561.48 and smallcap index 0.26 per cent to 7,920.72.
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