Sensex jumps 98 points, spirals to 44-month high

US stocks rallied in a late spurt on Monday, sending the blue-chip Dow to a new 2003 high, as investors bet the US Federal Reserve would keep interest rates down. The Dow Jones Industrial average rose 102.59 points, or 1.04 percent, to 9,965.27, its highest close since May 28, 2002.

In India, stocks displayed strength throughout the session. Tech stocks traded higher following the recovery in the US markets. Old economy — power, cement, automobile and metal — stocks rebounded after Monday’s weakness. Heavyweights like SBI, Reliance Industries and ITC contributed to the gains of the Sensex. Stocks in other sectors like banking, textiles, auto ancillary, leather and hotels also witnessed massive buying interest. Overall, while frontline stocks proved firm, action continued on mid-cap side counters.

Dealers said heavy buying by FIIs was the major reason for the bullishness. FIIs pumped in a huge Rs 221.50 crore on Friday (December 5), which was lower than the inflow of Rs 303.10 crore on Thursday. FII inflows into India in December 2003 have reached Rs 1,745 crore. For the calendar year 2003, FIIs put in Rs 30,979.10 crore.

Heavyweights ITC (up 4.12% to Rs 951.05), Reliance Ind (Rs 1.23% to Rs 485.90) and SBI (up 1.20% to Rs 461.45) contributed significantly to the gains of the Sensex. Satyam Computer (up 3.64% to Rs 338.55) emerged stronger after Monday’s decline from the higher levels.

Other tech pivotals Infosys Tech (up 1.35% to Rs 4,975.85) and Wipro (up 1.26% to Rs 1,548.50) managed modest gains following the rise in the US markets. Hero Honda Motors (up 3.42% to Rs 397.60), Tata Motors (up 1.85% to Rs 424.30) and Bajaj Auto (up 1.10% to Rs 985.85) made decent gains after Monday’s weakness.