Sensex rallies 180 points in afternoon trade

Mumbai: The Bombay Stock Exchange bellwether index Sensex climbed over 180 points in the afternoon trade on smart bout of buying in financial stocks, as investors appeared largely positive after the release of the Economic Survey as well as the Railway Budget presented Friday.

Stock markets turned volatile after opening firm in the morning trade, as buyers showed signs of nervousness.

But minutes after the Survey was tabled in Parliament, projecting 8.6 per cent GDP growth this fiscal and 9 per cent for 2011-12, the BSE key index surged 180.03 points to touch 17,812.44.

However, the railways related stock reacted negatively during the Rail Budget proposals and plummeted by up to 10 per cent on BSE. Wagons manufacturer Titagarh Wagons was the worst hit.

Analysts said, meanwhile, that the upmove was a knee-jerk reaction and the stock markets are likely to remain cautious ahead of the Union Budget-2011-2012, to be announced on February 28.