Sensex soars 350 points, touches 16k

Mumbai: The BSE benchmark Sensex surged by over 350 points to close the day at one-month high of 16,165.09 points on buying support triggered by upgrading of India`s rating to investment grade by Moody`s and also on account of likely rate cuts by RBI.

The rally was led Reliance Industries (3.99 per cent) and ICICI Bank (3.85 per cent) which together added over 100 points to the jump in Sensex. In across-the-board buying, all 13 sectoral indices closed higher in the range of 0.59 per cent 4.20 per cent. Realty, banking, metal, auto stocks were among the biggest gainers,

HDFC, L&T, ITC, SBI, M&M, Infosys Tech, Bharti Airtel, Tata Motors were the other significant stocks that ended up. The 30-share index resumed higher on the back of positive Asian advices following better closing on the Wall Street on Monday. It got a further boost when the news of Moody`s upgrading India`s rating filtered in. The key index never looked back and surged all the way to settle at 16,165.09, showing a sharp rise of 350.37 points or 2.22 per cent. This is highest closing level since December 9.

The 50-issue Nifty of the National Stock Exchange also flared up by 106.75 points or 2.25 per cent to one-month high of 4,849.55. "Markets opened with a positive gap on favourable global cues. The US markets have closed in positive territory overnight. Interest rate sensitive sectors banking, realty and capital goods stocks were active today on hopes that the Reserve Bank of India (RBI) may lower rates in coming monetary policy on January 24," said Shanu Goel Research Analyst Bonanza Portfolio said.