Sensex up 218 points,regains 18,000 level

Rise in RIL,Infosys Tech and ICICI Bank contribute over 100 points.

Led by bank and realty shares,Dalal Street rose for the second straight session on Wednesday as investors picked up bargains in a market that has underperformed so far this year amidst the governments move to push new Bills on the GST and banking segments.

The BSE Sensex which regained the 18,000 level after a week,initially showed some weakness but it rebounded to settle the day at 18,206.16,a net rise of 217.86 points or 1.21 per cent. The NSE 50-share Nifty also shot up further by 66.40 points or 1.23 per cent to end at 5,480.25.

There was fund buying at lower levels across sectors like realty,banking and pharma amid stable markets globally.

Besides,the sentiment turned positive after legendary investor Warren Buffett,who is on a maiden visit to India,indicated big investments in the countrys financial services and consumer goods sectors. The governments decision to lower taxes from the levels proposed in the Union Budget added to the positive mood.

Realty and banking stocks were at the forefront on bargain hunting at lower levels on expectations of robust property demand in the first half of 2011. Banking stocks were in strong demand after the government yesterday tabled the banking sector amendment Bill in the Lok Sabha, said a dealer.

The market is also eagerly awaiting the Constitution Amendment Bill to facilitate the implementation of the Goods and Service Tax GST,an indirect tax regime. Stock markets gathered some more steam today with the key indices extending the upswing to a second straight trading session amid positive vibes from the introduction of GST Bill and the Banking bill in Parliament, said Amar Ambani,Head of Research,IIFL.

After four days of sell-off,FIIs which purchased shares worth Rs 236.29 crore on March 22,bought stocks worth Rs 312 crore on Wednesday. Foreign funds have turned net buyers of Indian equities in March,after dumping them in the first two months of 2011. The net outflow for 2011 totals 1.9 billion. A smart rise in the three top heavyweights RIL,Infosys Tech and ICICI Bank contributed over 100 points to the Sensex. All sectoral indices ended with gains of between 0.05 per cent and 1.92 per cent.

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Meanwhile,the rupee today gained 11 paise to close at over two-and-a-half-month high of 44.85/86 against the US currency,largely driven by a smart rally in local equities amid expectations of increase in capital inflows. Relentless dollar selling by exporters and some banks also helped the rupee rise.

SILVER REBOUNDS: Silver bounced back sharply to hit a fresh peak at the bullion market here due to heavy stockists buying as well as strong industrial demand driven by bullish global trend. Gold also moved up on fresh local buying interest amidst good demand from jewellers. Silver ready .999 fineness surged by Rs 530 per kg to end at Rs 55,245 from Tuesdays closing level of Rs 54,715. It touched a record high of Rs 55,195 per kg on March 8. Standard gold 99.5 purity gained by Rs 35 per 10 grams to close at Rs 20,925 from Rs 20,890 previously. Pure gold 99.9 purity also firmed up by Rs 45 per 10 grams to finish at Rs 21,035 per 10 grams as compared to Rs 20,990 yesterday.