Sensex snaps four-day fall, gains 117 pts on US debt deal
Snapping a four-day fall, the BSE benchmark Sensex today rose 117 points on firm global cues after the US lawmakers reached an agreement at the eleventh hour to raise the country's debt ceiling to avoid a default.business Updated: Aug 01, 2011 16:50 IST
Snapping a four-day fall, the BSE benchmark Sensex on Monday rose 117 points on firm global cues after the US lawmakers reached an agreement at the eleventh hour to raise the country's debt ceiling to avoid a default.
The Bombay Stock Exchange's 30-scrip index, which had lost over 674 points in the last four runs, rose by 117.13 points, or 0.64% to 18,314.33, with IT, auto and heavy machinery stocks leading the recovery.
The gauge touched the high of 18,440.07 intraday.
Brokers attributed the widespread recovery in stocks to a firming trend in Asia after the US President Barack Obama announced that the country had reached an agreement to reduce the budgetary deficit and avert a debt default.
Good exports data at home further supported the market sentiment.
The rally was led by heavy trading in Sensex leader Reliance Industries, IT bellwether Infosys, country's biggest lender SBI, and Tata Motors, Tata Steel, Mahindra and Mahindra, Larsen and Toubro among others.
IT sector was the best performer, rising 0.86% on expectations that a fast recovery overseas front would boost demand for software business. Teck sector index followed next, rising 0.81%, and auto sector index by 0.79%.
Broadbased National Stock Exchange's index Nifty closed up 34.80 points, or 0.63% at 5,516.80, after touching day's highest at 5,551.90.