Sensex at 3-month high, gains 131 points

Mumbai: Making gains for the third day in row, the BSE Sensex reached 3-month high of 17,431.85, up over 131 points on sharp rise in Bharti Airtel as well as IT, metals and capital goods stocks amid positive overseas markets as major global economies showed signs of growth.

Asian markets gained on improved factory output figures from China, the US and Germany, reducing worries over slowing global growth. Domestically, after the Supreme Court quashed 122 telecom licences issued to new operators in 2008, stocks of old players such as Bharti Airtel and Idea rose 6.88 per cent and 2.68 per cent. Bharti Airtel was the top gainer from the Sensex pack.

However, in the broader market, Unitech, DB Realty, Videocon, RCom and Tata Tele fell by up to 7.04 per cent. Top IT firms gained with Infosys shooting up by 0.68 per cent, Tata Consultancy Services – 1.62 per cent and Wipro 3.46 – per cent. The Bombay Stock Exchange 30-share barometer opened higher on firm Asian cues and moved between 17,504.25 and 17,308.28 before settling at 17,431.85, highest close since November 8, – up 131.27 points or 0.76 per cent.

The NSE 50-issue index Nifty improved 34.20 points or 0.65 per cent to 5,269.90. FIIs continued buying Indian equities and they picked up shares worth Rs 1,676.49 crore as per provisional data with stock exchanges after pumping in Rs 645 crore yesterday as per Sebi figures. "Telecom stocks were mixed after the Supreme Court in its verdict in 2G telecom scam quashed 122 telecom licenses issued after January 2008. Cement stocks rose on back of strong monthly dispatches reported by ACC," Milan Bavishi Research Head Inventure Growth and Securities said.