Sensex rallies 180 points in afternoon trade

Mumbai, Feb 25 (PTI) The Bombay Stock Exchange bellwetherindex Sensex climbed over 180 points in the afternoon trade onsmart bout of buying in financial stocks, as investorsappeared largely positive after the release of the EconomicSurvey as well as the Railway Budget presented today.

Stock markets turned volatile after opening firm in themorning trade, as buyers showed signs of nervousness.

But minutes after the Survey was tabled in Parliament,projecting 8.6 per cent GDP growth this fiscal and 9 per centfor 2011-12, the BSE key index surged 180.03 points to touch17,812.44.

However, the railways related stock reacted negativelyduring the Rail Budget proposals and plummeted by up to 10per cent on BSE. Wagons manufacturer Titagarh Wagons wasthe worst hit.

Analysts said, meanwhile, that the upmove was a knee-jerkreaction and the stock markets are likely to remain cautiousahead of the Union Budget-2011-2012, to be announced onFebruary 28.