Sensex regains 19,000 level after 2 months on easing inflation

The Bombay Stock Exchange (BSE) benchmark Sensex today spurted by over 350 points to regain 19,000 mark after more than two months as investors purchased blue-chips, led by Reliance Industries, on easing food inflation.

The BSE benchmark Sensex spurted by 351.33 points to 19,078.30, a level last seen on April 29 as all the sectoral indices ended higher.

Similarly, the broad-based National Stock Exchange index Nifty rose by 103.50 points to 5,728.95. It touched the day's high of 5,737.15.

Trading sentiment bolstered as food inflation fell for second week in a row to 7.61 per cent for week ended June 25 from 7.78 per cent in the previous week.

Mixed Asian trend and higher opening in Europe as the investors awaited a decision from European Central Bank on interest rate to tackle high inflation.

The rally was headed by Reliance Industries and Infosys, which have together 21 per cent weightage on the Sensex. RIL shot up by 2.08 per cent to Rs870.35 and Infosys Technologies by 1.44 per cent to Rs2,995.15.

Stocks of RIL surged after the oil ministry referred its $7.2 billion deal for sale of a stake in 23 oil and gas properties to the UK-based BP to the Cabinet Committee on Economic Affairs for approval.

The FMCG sector index gained the most by rising 2.60 per cent to 4,086.83 as Nestle India rose by 0.68 per cent to Rs4,296.55 and Hindustan Unilever by 1.79 per cent to Rs335.45. The realty sector was the second best performer by adding 2.25 per cent to 2,183.40.

As buying activity spilled over a wide-front, the midcap sector index rose by 1.12 per cent to 7,039.52 and smallcap index by 1.08 per cent to 8,447.99.