Sensex surges 185 pts,L038;T leads rally

Amid easing inflation and falling commodity prices,BSE benchmark Sensex today rallied to nearly 185 points at 18,326.09,with blue-chip Lamp;T leading the gain. The 30-share index resumed higher and remained in the positive terrain throughout the day before settling 184.69 points,or 1.02 per cent,higher at 18,326.09.

Market experts and traders said a dip in food inflation early this month also spurred the market sentiment. Food inflation fell to a 18-month low of 7.47 for the week ended May 7. The higher oil subsidy burden on upstream companies played the spoiler in an otherwise bullish market, a trader said.

Similarly,the broad-based National Stock Exchange gauge Nifty rose by 58.25 points,or 1.07 per cent,at 5,486.35.

Nifty had a gap up opening on positive global cues. Immediately after opening,Nifty surged up on short covering witnessed in realty and banking stocks. Lamp;T resumed its upward trend after gaining nearly 7 per cent yesterday. Momentum gained as the session progressed. Volatility was witnessed in oil marketing companies and oil refinery companies with government declaring that additional fuel subsidy burden will be shared by upstream companies, said analyst with the Bonanza Portfolio Ltd.