Sensex closes at one-month high level

In across-the-board buying,all 13 sectoral indices closed higher in the range of 0.59 per cent 4.20 per cent.

Realty,banking,metal,auto stocks were among the biggest gainers,

HDFC,Lamp;T,ITC,SBI,Mamp;M,Infosys Tech,Bharti Airtel,Tata Motors were the other significant stocks that ended up.

The 30-share index resumed higher on the back of positive Asian advices following better closing on the Wall Street yesterday.

It got a further boost when the news of Moody8217;s upgrading India8217;s rating filtered in. The key index never looked back and surged all the way to settle at 16,165.09,showing a sharp rise of 350.37 points or 2.22 per cent. This is highest closing level since December 9.

The 50-issue Nifty of the National Stock Exchange today flared up by 106.75 points or 2.25 per cent to close at a one-month high of 4,849.55.

8220;Markets opened with a positive gap on favourable global cues. The US markets have closed in positive territory overnight. Interest rate sensitive sectors banking,realty and capital goods stocks were active today on hopes that the Reserve Bank of India RBI may lower rates in coming monetary policy on January 24,8221; said Shanu Goel Research Analyst Bonanza Portfolio said.

A hefty increase in foreign direct investment FDI to 56 per cent in November also kept the market tempo upbeat. The FDI inflows in November totalled USD 2.53 billion against USD 1.62 billion in the same month last year.

Asian markets ended firm today on optimism that US economy is weathering Europe8217;s sovereign-debt crisis. Key benchmark indices from China,Hong Kong,Japan,Singapore,South Korea and Taiwan ended up between 0.38 per cent and 2.69 per cent

European indices too were trading higher between 1.0 per cent and 2.0 per cent in their afternoon deals.

Strong opening in the European markets further fuelled the rally during the afternoon session and Sensex extended its gains. Global rating agency Moody8217;s upgraded India8217;s short- term foreign currency rating from speculative to investment grade,improving the sentiments further,8221; Goel added.

Among the sectoral indices on BSE,realty spurted by 4.20 per cent,consumer goods by 3.56 per cent,Bankex by 3.17 per cent,Metal by 2.96 per cent,Auto 2.91 per cent and Oilamp;Gas 2.74 per cent.

Buying was was seen in second-line stocks by retail investors for the second day. BSE-Smallcap and the BSE-Midcap indices concluded up by 2.63 pct and 2.24 pct respectively.

The total market breadth on BSE was strong as 2,137 stocks closed in the green 671 that ended in the red. The total turnover shot up to Rs 2,555.43 crore from Rs 1,986.31 crore yesterday.

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PREOPEN

Sensex today is likely to start higher tracking firmer Asian markets,but they could face resistance as investors brace for quarterly earnings that are expected to show slower growth.

Foreign exchange losses caused by a sharp depreciation in the rupee,high interest rates and input costs are expected to have squeezed the margins of many companies,said Ambareesh Baliga,chief operating officer at Way2Wealth.

We are in the no man8217;s land right now. It8217;s a narrow range where stocks are trading. Even the up move that we may see today may not last beyond 4,850,he said,referring to the 50-share Nifty index.

Tata Steel,the world8217;s seventh steelmaker,could open lower after it said late on Monday sales from its Indian operations fell 1.1 per cent to 1.62 million tonnes in October-December.

At 0218 GMT,the MSCI8217;s broadest index of Asia Pacific shares outside Japan was up 1.6 per cent,while the Nifty India stock futures in Singapore were up 0.41 per cent,pointing to a gap up opening for the domestic market.

The main 30-share index closed down 0.22 per cent at 15,814.72. The benchmark,which fell almost a quarter in 2011,rose 2.5 per cent last week.

The Nifty closed down 0.1 per cent at 4,742.80 on Monday.

STOCKS TO WATCH

Adani Enterprises and GAIL India after sources told Reuters the two companies along with Gujarat State Petroleum Corp were likely to bid for BG Group8217;s stake in Gujarat Gas for about 900 million.

Hindustan Petroleum Corp after sources told Reuters the state-run oil marketing company would double the volume of Saudi crude it imports in an annual deal beginning April.

Kiri Industries Ltd after the company said its board had approved raising up to 3 billion rupees.

Take Solutions Ltd after the company said it had divested its holdings of 507,909 equity shares in its Muscat-based unit Towell Take Investment LLC.

GeeCee Ventures Ltd after the company said its board had approved buyback of up to 1.6 million shares at a price not exceeding 65 rupees per share.