Led by Reliance Industries and bank stocks,the benchmark Sensex soared 184 points to close above the 17,000-point level,joining a smart rally in other Asian and European markets. The index settled the day at a three-week high of 17,032.51,showing a rise of 1.09 per cent over its last close. The Asian markets had rallied on the back of the news that the Japanese economy grew at a better than expected rate. Also the weakness in the dollar after the Chinas chief banking regulator on Sunday criticized the loose US monetary policy helped metal prices to shoot up with gold futures at an all-time high. These cues brought fresh buying interest into our markets in sectors like realty,metal,banking and auto, said Alex Mathews,Head of Research,Geojit BNP Paribas. Auto stocks attracted continued demand from investors as the sector registered robust sales growth in October. Shanghai Composite gained 2.74 per cent,Strait Times 2.08 per cent,Hang Seng 1.73 per cent,Taiwan weighted 1.66 per cent and Kospi 1.30 per cent. European markets were trading firm in early trade on Monday. The market sentiment was also boosted by sustained capital inflow into equity. Foreign institutional investors invested over Rs 544 crore on Monday,taking the total investment in November to Rs 2,757 crore. The market,however,came under pressure at the day's higher levels on concerns about rising inflation which stood at 1.34 per cent for October. Indias largest small car maker Maruti Suzuki soared by 5.45 per cent,the bike maker Hero Honda by 3.82 per cent and the truck marker Tata Motors by 2.32 per cent. Rate sensitive realty sector also attracted heavy buying support after an recent steep fall,as a result the BSE Realty Index jumped by 3.15 per cent. DLF was up 4.54 per cent,Sterlite 3.55 per cent,Reliance Comm 3.05 per cent,Tata Steel 2.65 per cent,Hindalco 2.60 per cent,Hindustan Unilever 2.10 per cent,Grasim 2.07 per cent,SBI 2.03 per cent and Mah & Mah 1.79 per cent. IT stocks,however,witnessed pressure on reports that European Union plans to impose value added tax on services delivered from Non-EU nations including India. With agencies
