Sensex gains 325 points on global cues

Across-the-spectrum buying, boosted by easing fears of eurozone debt problems after German and France leaders reached an agreement tostrengthen the European banks, lifted the benchmark Sensex by another 325points to end at more-than one-week high of 16,557.23.

Interest rates sensitive stocks from realty, consumerdurable, auto and banking segments attracted heavy buying interest for thesecond session in a row on hopes that the RBI may pause to hike interest ratesdue to slow down in economy.

IT counters too were in demand ahead of the announcement ofsecond quarter results by IT bellwether Infosys Tech on Wednesday amidsustained weakness in the rupee value.

Telecom and Information Technology Minister Kapil Sibal saidon Friday the government is considering offering tax incentives to softwareexporters once the Direct Taxes Code is implemented in April, 2012, also aidedthe firm trend.

The Bombay Stock Exchange 30-share barometer opened betterand remained major part of the day in positive terrain.

It finally settled at 16,557.23, a net rise of 324.69 pointsor 2.00 per cent. Last Friday, it had surged by 440.13 points or 2.79 per cent.

Similarly, the 50-issue Nifty of the National Stock Exchangealso spurted by 91.55 points or 1.87 per cent to conclude at 4,979.60.

The leaders of Germanyand France yesterday saidthey have reached an agreement about how to strengthen Europe'sshaky banking sector amid the region's debt crisis, giving some relief to theinvestors.

However, both leaders declined to name a price tag for thenew measures or elaborate further, saying the proposal must first be discussedwith other European leaders.

Asian markets ended narrowly mixed today. Key indices from Singapore and South Korea closed better while from Chinasettled down and from Hong Kong finished juststable. Japan and Taiwan marketswere closed today.

European stocks, however, were quoting firm in theirafternoon deals. The CAC, the DAX and the FTSE were trading up between 0.3 percent and 0.7 per cent.

Back home, top heavyweight and petro-chem giant, RIL andcountry's second biggest software exporter and second heavyweight, Infosys Techtogether contributed over 100 points to the sensex gain.

Besides overseas developments, the market will take cuesfrom the forthcoming second quarter results to be announced since thismid-week, marketmen said.

25 out of 30 sensex-based scrips closed in the green whileothers concluded in the red. Tata Motors was the top gainer from the Sensexpack with a rise of 7.40 per cent followed by Tata Power (5.44 per cent), DLF(4.74 per cent), Wipro (4.42 per cent), Sterlite Ind (3.48 per cent), ONGC(3.42 per cent), Infosys Tech (3.36 per cent), Bajaj Auto (3.34 per cent), RIL(3.30 per cent), Tata Steel (3.25 per cent), HDFC (2.60 per cent), ICICI Bank(2.44 per cent), Bharti Air (2.38 per cent), NTPC (2.34 per cent), BHEL (2.18 percent), TCS (2.03 per cent), Hero Honda (1.72 per cent) and Coal India (1.68 percent).

Out of 13 sectoral indices, only BSE-HC closed in the red.BSE-Realty flared up by 3.22 per cent, BSE-IT by 2.85 per cent, BSE-CD by 2.78 percent, BSE-Oil&Gas by 2.72 per cent, BSE-Teck by 2.66 per cent and BSE-Autoby 2.26 per cent.

Total market breadth on the BSE remained positive as 1,686stocks closed with gains while 1,084 ended with losses.

The total turnover was relatively higher at Rs 2,214.13crore from Rs 2,072.47 crore last Friday.