Sensex up 145 points on global cues, despite high food inflation

Shrugging off rise in food inflation, the Bombay Stock Exchange (BSE) Sensex made gains for the third day in a row and closed over 18,350, up 145 points, following firm global cues amid renewed capital inflows.

The BSE 30-share index, Sensex, opened up in tandem with positive Asian markets and remained in the green through the day, ending at 18,350.74 -- a gain of 144.58 points or 0.79%.

The NSE 50-issue Nifty also improved further by 42.15 points or 0.77% to end above 5,500-mark at 5,522.40.

Realty, auto and capital goods witnessed good buying, as well as short-coverings by operators ahead of the expiry of the monthly derivatives contract on March 31.

The investor sentiment remained upbeat on the positives of the past couple of days -- the tabling of the two reforms bills on banking and indirect taxes in the Lok Sabha, easing concerns over Japan's nuclear problems and legendary US investor Warren Buffett's indications to invest in India in a big way.

Out of the 13 sectoral indices, only BSE - oil and gas and BSE - HC closed with minor losses, while other closed with gains between 0.33% and 2.83%.

Hindalco Ind, the country's largest aluminium maker, was the top gainer from the Sensex pack, up 4.25% on surge in metal prices on London Metals Exchange (LMEX) yesterday.

"The Indian market extended its winning streak to three days as healthy inflows from FIIs in the previous session bolstered the sentiment," said Amar Ambani, IIFL head of research (India Private Clients).

"Investors chose to overlook a series of bad news like an increase in food inflation, political crisis in Portugal and the ongoing turmoil in the Middle Eastern region," he added.