Sensex rallies 472 pts, regains 16k level

Mumbai:  The Bombay Stock Exchange benchmark Sensex Monday rallied 472 points to regain the crucial 16,000 mark after a week amid firm global markets and investor hopes of more economic reforms following the government move to allow FDI in multi-brand retail.

The Sensex, which touched two-year low last week under tremendous selling pressure, spurted 471.70 points, or 3.01 per cent to 16,167.13. The gauge had fallen below 16,000 level on November 21.

On similar lines, the broad-based National Stock Exchange index Nifty shot up 141.25 or 3 per cent to 4,851.30 led by blue-chips like Reliance Industries, Infosys, Tata Motors, Tata Steel and Tata Consultancy Services.

Brokers said that despite political opposition to the move, government`s decision to open up the retail sector to greater FDI inflows, particularly 51 per cent holding in multi-brand retail has raised hopes that more such reforms could follow.

Besides, they said, strong cues from Asian markets and firm openings in Europe on reports that the IMF may help in easing the euro-zone debt crisis bolstered Indian markets.

RIL and Infosys, with combined weight of 20 per cent in the Sensex, shot up on value buying after recent declines. RIL spurted by 3.77 per cent and Infosys by 1.52 per cent.

The metals sector index gained the most, adding 5.15 per cent at 10,383.68, followed by banking index – up 3.65 per cent at 10,124.96. Oil and Gas index rose 3.38 per cent to 8,166.62 and realty index by 2.75 per cent to 1,622.78. Of the 30 Sensex stocks, 28 ended with gains, while two remained in the negative zone.