Sensex shoots up 349 points on monsoon outlook; auto leads gains

The Bombay Stock Exchange benchmark Sensex shot up 349 points today to over 19,470 as funds bought strong stocks, led by auto and IT sectors, amid forecast of normal monsoon and firm global cues.

The Sensex, which had gained 31 points in the previous session, spurt 349.15 points to close the day at 19,470.98.

The broad-based National Stock Exchange index shot up by 110.90 points to 5,851.65.

Brokers said reports that rains this year will be 98% of the long period average (LPA), coupled with a firm tend in the Asian region and higher openings in the European markets, pushed up the domestic markets.

The auto sector index gained the most, 2.72%, to reach 9,609.84, as Mahindra and Mahindra rose Rs36.70 to Rs763 and Tata Motors by Rs48.05 to Rs1,251.35.

The monsoon forecast also buoyed companies such as National Fertilisers, Gujarat State Fertilisers and Chemicals and Rashtriya Chemicals and Fertilizers.

The IT sector rose 2.39% to 6,248.18 as HCL Technologies led gains among software exporters. It added 9.93% to Rs522.85 after reporting profits that exceeded market estimates. TCS climbed 4.63% to Rs1,218.80 ahead of its earnings report tomorrow.

The most-heaviest on the Sensex, Reliance Industries spurt Rs14.35 to Rs1,025.70, and the second-heaviest Infosys Technologies by Rs18.80 to Rs2,905.50. The two carry nearly 23% weightage on the benchmark.

Major market supporters were HDFC Bank, ICICI Bank, Tata Power, Tata Steel, Bajaj Auto and BHRL on increased buying by investors at lower levels.

As buying spilled over to broader market, smallcap sector index gained 1.29% to 8,875.80 and midcap index by 1.18% to 7,225.87.