Sensex regains 20000 level after 5 weeks; up 171 points

The BSE benchmark Sensex today regained the 20,000 mark after a gap of five weeks on hectic buying in financial and metal stocks on expectation of recovery in the US improved outlook for commodities.

The Bombay Stock Exchange benchmark Sensex shot up 171.44 points to 20,060.32, a level last seen on November 15, as companies from JSW Steel to Lanco Infratech announced expansion plans that may boost profitability.

In a similar fashion, the broad-based National Stock Exchange index Nifty also crossed 6,000 points level to trade higher by 53.60 points to 6,000.65 after a long gap.

Trading sentiment firmed as Asian stocks climbed to 27-month high on US economic reports that boosted confidence in the global economic recovery.

Also, concerns eased that Europe’s debt crisis and China’s measures to slow inflation will hurt growth.

Besides, higher opening in Europe and China's reported "concrete action" to help in solving European sovereign debt crisis boosted investor confidence.

The MSCI Asia Pacific Index rose one per cent, the biggest increase since December 3, to 134.73.

The metal sector index gained the most by rising 2.76% to 17,097.05 as JSW Steel, the third-largest producer, climbed 2.23% to Rs1,211.95 after the company offered a controlling stake in Ispat Industries. NMDC Ltd, the biggest iron-ore producer, advanced 2.63% to Rs263.30 supported by plans to buy an Australia mine.

The metal sector also remained in demand following a sharp rise in base metal prices in overseas markets. Copper advanced 0.5% in London, rising for a third day, on optimism the economic recovery in the US remains intact.

The banking sector index was second best performer by adding 2.34% to 13,077.65 as front-runner banks -State Bank of India, ICICI Bank and HDFC Bank gained between 1.4% and 3.5%. Leading mortgage lender Housing Development Finance Corp was up 1%.

Lanco Infratech, the company that agreed to buy Australia’s Griffin Coal Mining, rose 0.64% to Rs62.50.