Sensex up 204 points in opening trade on funds buying

MUMBAI: The Bombay Stock Exchange benchmark Sensex today surged by over 204 points in opening trade, extending its winning streak for the third straight session on continued buying by funds, driven by firming trends in global markets.

The 30-share index, which had rallied nearly 645 points in the previous two sessions, shot up by 204.70 points, or 1.21%, to 16,871.10 points in opening trade, with all sectoral indices trading in the positive zone with gains up to 2.18%.

The wide-based National Stock Exchange index Nifty also rose by 58.50 points, or 1.16%, to 5,061.60 points.

Stockbrokers said the trading sentiment remained firm on the back of a rebound in global markets on easing concerns about the euro after China's assurance that Europe remains a key investment market for its foreign exchange reserves.

Strong earnings by Tata Motors also had a positive impact, triggering buying in auto sector stocks.

Stocks of Tata Motors, the country's largest auto company, were being traded 3.04% higher at Rs 765.50, while Maruti Suzuki gained 0.43% to Rs 1,238 and Mahindra and Mahindra shares were up by 1.67% to Rs 537.55.

Other prominent gainers included Reliance Industries, which gained 0.91% to Rs 1,031.15, which ONGC was up by 1.33% to Rs 1,140.35, Infosys Technologies by 0.66% to Rs 2,661, Tata Steel by 2.54% to Rs 505.50 and Sterlite Industries by 3% to Rs 664.15.

The US Dow Jones Industrial Average ended 2.85% higher in the previous session, while Japan's Nikkei gained 1.51% and Hong Kong's Hang Seng were up 1.96% in morning trade today.