Sensex rises 1.5 pc as December rally runs on

The BSE Sensex rose 1.47 per cent on Tuesday on late buying in frontline stocks such as Reliance Industries...

The BSE Sensex rose 1.47 per cent on Tuesday on late buying in frontline stocks such as Reliance Industries and covering of short positions by domestic institutions ahead of an expected cut in US interest rates.

State-run explorer Oil and Natural Gas Corp jumped 6.1 per cent to 713.75 rupees, the biggest percentage rise of the top 30 stocks, aided by hopes of a sharp supply cut by OPEC later this week that could bolster crude oil prices. Largest listed firm Reliance Industries rose 3.6 percent to 1,386.80 rupees, taking its gains to 22.6 per cent this month, largely due to foreign fund buying.

“There are a lot of trading opportunities available in the market. People are trying to take advantage of the short rally, before a fall in January as earnings results come,” said Sharmila Joshi, vice president at Systematix Shares. The 30-share benchmark stock index ended up 144.59 points at a one-month closing high of 9,976.98 points, having risen above 10,000 for the first time since November 11 in the last few minutes of trade, with 20 components gaining. The index has risen 9.7 per cent in December, but is down 50.8 per cent in 2008.

In the broader market, 1,874 gainers outpacing 648 losers on volumes of 377 million shares. The 50-share NSE index rose 2.03 percent to 3,041.75 points, its first close above 3,000 since November 10. Software firms were among the gainers as positive news from HCL Technologies sparked interest from local funds. HCL said it had signed contracts worth more than $1 billion since October.