Sensex surges 421 pts on fund inflows, firm global trend

The Bombay Stock Exchange benchmark Sensex on Tuesday spurted over 421 points - its biggest gain in two weeks - on fresh inflows amid some positives, including RBI's plan to reverse tight monetary policy stance, and a firm global equities.

Sensex, which had gained 63 points on Monday, surged another 421.44 points, or 2.72 per cent to 15,939.36 as two heavyweights Reliance Industries and Infosys gained over two per cent each. While RIL shot up 2.37 per cent, Infosys gained 2.13 per cent.

After losing 25 per cent last year due to high inflation, soaring interest rates and the weakening rupee, Indian markets have commenced the New Year on a positive note amid the government's allowing foreign individuals to invest in stocks, and RBI saying that it may reverse tight money policy stance.

The NSE 50-issue index Nifty gained 128.55, or 2.77 per cent to 4,765.30.

Metals, capital goods and banks led the gains.

A firm trend in Asian markets and higher opening in Europe further supported the uptrend on growth in the region's manufacturing sector.

In the broader market, Network18 Media and TV18 Broadcast jumped 17.77 per cent and 18.25 per cent on reports that RIL plans to invest more than Rs 1,500 crore in TV18.

The metals sector index gained 5.05 per cent at 9,825.01, followed by capital goods - 4 per cent at 8,458.64. Banking index rose 4.35 per cent to 9,576.99 and realty index by 4.28 per cent to 1,428.90.