Sensex up 488 points on strong global cues
The Bombay Stock Exchange benchmark Sensex gained a hefty 488 points in morning trade on Wednesday on strong global cues.
The 30-share index, Sensex opened sharply up at 16,023.30 and rallied smartly to 16,114.99 at 1030 hrs, a rise of 488.37 points over its previous close of 15,626.62.
The Sensex touched a high of 16,236.70 in the initial 30 minutes of trading.
Marketmen said global markets led by American stocks bounced back, shrugging off the on-going turmoil in the US housing market, a credit crunch and continued worries about a recession in the world's largest economy.
The broader 50-share S&P CNX Nifty of the National Stock Exchange also spurted by 131.30 points to 4,870.85 at 1030 hrs from its last close of 4,739.55.
Meanwhile, the government initiated further steps to tackle rising inflation and is likely to ask steel producers to lower prices by about 10-20 per cent within a month.
Capital goods shares, which came under heavy selling in the last session, rebounded on aggressive buying support at the initial stages of the session.
Marketmen said shares from all the sectors attracted good buying interest at the prevailing price levels.