Led by RIL, Sensex scales fresh 2-year high

The BSE benchmark Sensex on Monday rose to fresh two-year high of 20,101.82 points gaining 63 points on goody buying, particularly in RIL shares, triggered by strong quarterly earnings by corporates.

Extending gains for the third straight day, the Sensex settled at 62.78 points, or 0.31%, up at 20,101.82 — its highest level since January 6, 2011. In the previous two days it had gained over 221 points.

The broad-based National Stock Exchange index Nifty rose by 17.90 points, or 0.30%, to 6,082.30, while Nifty futures index breached 6,100-level for first time since January 6, 2011 as investor mood remained bullish.

Brokers said quarter earnings posted by Reliance Industries and other companies helped boost the sentiment.

RIL stocks rose by 2.35% to Rs 920.05, after surging to 52-week high of Rs954.80 intra-day. The company had posted 24% jump in its net profits for the third quarter(October-December)

Brokers said the present rally is led by oil companies whose shares are attracting goody buying in the wake of government allowing refiners to raise diesel prices.

In 30-BSE index components, 17 gained while 13 ended with losses. The oil and gas and capital goods sector indices were in the limelight.

BHEL shot up 2.25% to Rs231.65 and Larsen and Toubro by 2% to Rs1,567.25. Maruti Suzuki gained 1.87% to Rs1,574.65 ahead of their earnings later this week.

The market sentiment was further bolstered on higher opening in European markets as eurozone finance ministers are meeting for the first time this year to tackle the sovereign debt crisis.