The Bombay Stock Exchange benchmark Sensex today rose by 90 points on funds buying in fundamentally strong stocks led by Reliance Industries and on expectations of robust earnings amid firming global trend.
The Sensex gained 89.63 points, or 0.44 per cent, to 20,339.89 with heavy-weight stocks in refinery, auto and metal sectors gaining substantial ground on investment support. Initially, the market recorded a handsome gain of 211 points.
The broad-based National Stock Exchange index Nifty rose by 32.40 points to 6,135.85, after touching the day's high of 6,187.75.
Marketmen said the investor fraternity was in a bullish mood on a better outlook for the quarterly (July-September) earnings and a higher domestic growth.
They said the metal and auto stocks were in keen demand as investors judged the outlook for domestic consumption and raised demand for homes, cars and petroleum products.
A firming trend in the Asian region and higher opening in European further bolstered the market sentiment. During the September quarter, performance of leading companies is expected to be robust on the sales front.
However, brokers said, net profit growth during the quarter would lag top-line growth.
The heaviest on the benchmark, Reliance Industries rose by Rs 20.05 to Rs 1,068.30, and Tata Motors by Rs 45.35 to Rs 1,150.25 on the hopes that the current festival season might boost demand for new vehicles and fuel.
In the metal sector, Tata Steel spurted by Rs 12.90 to Rs 639.85 and Sterlite Industries by Rs 5.45 to Rs 179.35 on firming trend in base-mental prices in the overseas markets, amid speculation that the US Federal Reserve might act to further stimulate economic growth, supporting a fragile global economic recovery.
IT stocks, led by Infosys Technologies, fell on fears of decline in revenues as the rupee has gained 5 per cent against the dollar in the past month on heavy inflow of funds in the domestic market.
Infosys fell by Rs 7.25 to Rs 3,070.15, Tata Consultancy Services by Rs 1.55 to Rs 940 and Wipro Ltd by 65 paise to Rs 461.55. The three carry nearly 15 per cent weightage on the benchmark.
In the 30-BSE index components, 18 stocks gained while other 12 closed with losses.
