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Sensex ends 137 points up on Monday
Sensex gained 136.85 points to end at 6,555.94, on Govt's decision to allow private PFs to invest in stockmarket.
Indian shares rallied more than two per cent on Monday to a four-week closing high, as traders cheered the Government's decision last week to allow private pension funds to invest in the stock market, brokers said.
The 30-issue Bombay share index -- Sensex closed up 136.85 points or 2.13 per cent at 6,555.94 points -- its best close since January 4 and taking gains in the past four days to 7.4 per cent.
The marker is still down 2.1 per cent from a historic high of 6,696.31 points struck earlier this month.
Volume was heavy at 245 million shares, while gainers outpaced losers by 1,209 to 813 -- reflecting a bullish undertone. The broader National exchange index -- Nifty closed up about 50 points or 2.45 per cent at 2,057.60 points.
"The undertone is very bullish after the Government's provident fund decision," said institutional dealing at Lohia Securities Ltd, Anil Agarwal.
Nearly Rs 200 billion is expected to flow into the stock market as a result of the policy change, which was announced on Friday.
Tata Motors Ltd, the nation's top truck and bus maker, climbed 2.6 per cent to Rs 504.75 after it reported a higher-than-expected rise in third-quarter quarter net profit to Rs 3.16 billion.
State-run Oil and Natural Gas Corporation Ltd rallied 2.7 per cent to Rs 818.90, ahead of its quarterly earnings. A Reuters estimate forecast the company to report a 116 per cent rise in the past quarter net profit to Rs 37.2 billion.
The company is set to release earnings later in day.
Cement makers rallied on expectations of robust shipments in January, ahead of the data due to start from Tuesday.
Grasim Industries Ltd, the top cement group, rose 0.9 per cent to Rs 1,328.20 and Associated Cement Companies Ltd rallied about two per cent to Rs 357.35.
But ITC Ltd, the top cigarette maker, fell 2.8 per cent to Rs 1,361.85, after a Finance Ministry official said the company would have to pay Rs 4.49 billion as excise tax within 30 days.
State Bank of India, the nation's top commercial bank, jumped 3.2 per cent to Rs 642.80, adding to Friday's seven per cent rally on strong earnings.
