Sensex rallies over 358 pts on all-round buying

Mumbai, Feb 3 (PTI) In a strong pull-back rally, thebenchmark Sensex today spurted for the second day, closingover 358 points up at 18,449.31 -- biggest single day gainthis year -- on across-the-board buying led by realty, capitalgoods, metal and banking segments.

Investors shrugged off inflation and high interest rateworries on indications from US and Europe that global economicrecovery was taking hold.

Marketmen said the rally was triggered by hectic short-coverings at lower levels amid domestic funds buying despite aspurt in food inflation and sustained capital outflows in theabsence of firm direction from overseas markets.

The Bombay Stock Exchange 30-share barometer, few minutesafter the onset of business, touched a low of 18,064.61 beforebouncing back to settle the day at 18,449.31, a sharp rise of358.69 points or 1.98 per cent. Yesterday, it was up by 68.40points or 0.38 per cent.

Similarly, the NSE 50-issue Nifty shot up 94.75 points or1.74 per cent to 5,526.75.

Smart rise in heavyweights like RIL, L&T, ICICI Bank,SBI, Bharti Airtel, Tata Motors, HDFC Bank, Infosys Tech,Hindalco, BHEL, HDFC, Tata Steel and DLF contributed to theSensex rise enormously.

Finance Minister Pranab Mukherjee yesterday said thatstock markets had seen volatility over the past few days dueto selling pressure from Foreign Institutional Investors(FIIs) but the government expected 8.5 per cent economicgrowth this fiscal. .