Sensex rallies 338 points to 31-month high

The BSE benchmark Sensex on Tuesday rallied by over 338 points to close at its highest level in two-and-half years as better-than-expected jobs data from the US allayed concerns that global economic growth is faltering.

Led by a sharp rise in metal and banking stocks, coupled with firm global cues, the 30-share barometer of the Bombay Stock Exchange settled the day at 18,560.05, higher by 338.62 points, or 1.86 per cent.

This is the best close of the Sensex since February 5, 2008, when it had ended at 18,663.16 points.

The National Stock Exchange's wide-based Nifty Index rose 1.78 per cent to finish at 5,576.95.

Analysts said the rally in local markets was in line with the rebound in world equities on the back of improved growth in private employment and manufacturing in the US, which raised optimism that the global economy will avoid another recession.