Sensex gains by 176.26 pts

Mumbai,Feb 1 (UNI) The Sensex today recovered smartly by 176.26 points to close firm at 14,267.18 on the Bombay Stock Exchange on fresh speculative demand from Foreign Institutional Investors (FII's) and mutual funds.

The market staged a solid rebound after Wednesday's 121-point fall, tracking firm global markets, boosted by the US Federal Reserve's decision to keep interest rates steady. The Fed also abstained from voicing new concerns about inflation, signalling that a rate hike this year was less likely.

Back home, the market sentiment was also firm after the Reserve Bank of India on Wednesday upgraded its 2006/07 GDP growth forecast to 8.5 - 9.0 per cent from 8 per cent, along with raising the key short-term lending rate by 25 basis points. The Sensex had declined 121 points following the announcement on Wednesday.

Banking, telecom shares and cement pivotals led today's surge.

The market-breadth on BSE was a bit positive. For 1,333 shares rising on BSE, 1,319 declined. Just 41 shares were unchanged.

The BSE clocked a turnover of Rs 395 crore.

The Sensex opened higher at 14,124.36 points. Later, it recorded a high at 14,278.08 points and a low at 14,109.91 points.

The BSE BANKEX and METAL indices also jumped up sharply by 153.06 and 152.79 points respectively. They closed high at 7413.15 points for BANKEX index and for METAL index at 9435.96 points, followed by CG index by 102.31 and quoted at 9588.10 points, PSU index by 99.77 touching 6400.12 points, CD index by 94.07 closing at 3895 points, TECK index by 61.31 touching 3809.77 points, AUTO index by 54.64 and quoted at 5570 and OIL&GAS index by 37.09 and closed at 6668.11 points.

Meanwhile, the S&P CNX Nifty index of NSE closed firm at 4137.20 points with a major gain around 55 points from its last close of 4082.70 points before it resumed flat at 4083.40 points. Later it registered the day's high at 4141.60 points and a low at 4081.10 points.

Global rating agency Standard&Poors (S&P) raised India's sovereign local currency credit ratings to investment grade BBB-/A-3, with a stable outlook, citing strong economic prospects and an improving fiscal situation.

Global markets were firm on Thursday. In Europe, key benchmark indices in London, Germany and France were up between 0.8 - 1 per cent. Asian markets held firm after the US Federal Reserve kept interest rates steady at 5.25 per cent.

Key benchmark indices in Hong Kong, Japan, South Korea, and Singapore were up between 0.7 - 1.7 per cent. Nymex crude was down 38 cents, at USD 57.76 a barrel, brokers said.

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