Sensex up 195 points as assembly polls show support for UPA

The BSE Sensex moved up 195 points to 18,531 today as investors welcomed poll results in states which showed strong support for Congress and its allies, notably Mamta Banerjee-led Trinamool Congress's routing the Left in West Bengal, and picked up stocks at lower levels.
    
Besides, investors were encouraged by global cues, especially in Europe where stock markets were up after Germany showed strong economic growth.
    
The 30-share Bombay Stock Exchange index, Sensex, resumed 18,362.45 and moved between 18,724.54 and 18,280.70 before ending the day at 18,531.28, up 195.49 points or 1.07%. It had closed down about 249 points yesterday.
    
The NSE 50-share Nifty also shot up 58.60 points or 1.07% to finish at 5,544.75.
    
Brokers said investor sentiment got a boost as poll results in three of the four states showed that the ruling Congress and its allies at the centre were in strong favour, indicating that economic reforms may pick up pace across the country in the coming months.
    
"Investors cheered the election results as ruling congress party's alliance won polls in three states," said CNI Research CMD Kishor Ostwal.
    
"They are upbeat on political clarity in the country and are expecting that issues of 2G scams will be resolved soon after the wash out of DMK," he added.
   
Meanwhile, Ashika Stock Brokers' Research Head Paras Bothra said the victory for Congress and its allies in state polls may not boost FII inflows.
    
"Probably, we are still in a range and there is no material change as such. It is a one or two day long euphoria that has come into the market," Bothra added.
    
The rally, however, was broad-based with all the 13 sectoral indices ending with gains of 0.34% to 2.35%.
    
Also, of the 30 Sensex scrips, 27 ended with gains. Index heavyweight Reliance Industries (RIL) extended initial gains, helping lift the market.
   
Banking and software stocks gained on fresh buying. Metal stocks rose on buying at lower levels after yesterday's steep slide.
    
IT stocks gained on fresh buying. India's third largest software exporter Wipro advanced by 2.11%. The company has signed an agreement to acquire a majority stake of Brazil-based Hydraulic Cylinder manufacturer.

European shares up in early trading, on some strong corporate results and Germany's economy growing faster than expected in the first quarter.
    
The key benchmark indices in France, Germany and UK rose between 0.25% and 0.61%.
    
Asian shares, however, ended mixed after China tightened key rates. Markets in Japan, South Korea, China and Taiwan fell between 0.12% and 0.70%, while indices in Indonesia, Hong Kong and Singapore ended up 0.88% to 1.06%.
    
Major gainers from the Sensex pack were Jaiprakash Asso (3.12%), ITC (3.10%), Hero Honda (2.48%), Jindal steel (2.43%), Bajaj Auto (2.17%), DLF (2.02%), ICICI Bank (1.96%), Tata Motors (1.75%), Larsen (1.73%), Hind Unilver (1.63%), Tata Steel (1.63%), Hindalco Ind (1.54%), TCS (1.40%), R-Infra (1.14%) and Cipla (1.10%).
    
Among the major indices the BSE-FMCG shot up 2.35%, followed by Metals (1.48%), Healthcare (1.40%), Auto (1.35%), Capital Goods (1.34%), Bankex (1.30%) and Realty (1.13%).
    
The total BSE market breadth turned positive as 1,582 stocks ended with gains, while 1,187 stocks finished with losses. The total turnover shot up to Rs2,840.44 crore from Rs2,595.64 crore yesterday.