Sensex ends above 60,000, Nifty scales 17,900

Mumbai: Benchmark BSE Sensex rose by about 322 points to close above the 60,000 level on Monday tracking gains in banking, IT and energy stocks amid positive global equities. Rising for a third straight day, the 30-share barometer closed higher by 321.99 points or 0.54 per cent at a three-week high of 60,115.13. Foreign fund buying, crude oil prices trading near $93 level, and macro data reflecting the strong growth recovery, boosted investor sentiment. Gains in global equity markets also propped up the local equities.

"Domestic economy is witnessing strong vigour and the same is assisting a steady growth in Indian equities. A 15.5 per cent YoY increase in bank credit during August suggests that the economy is recovering rapidly. Investors were also awaiting key consumer inflation and industrial production data to be released after market hours. Due to rising food prices, domestic inflation figures are predicted to show a gradual rise from 6.7 per cent in July, which could add volatility in the short-term," said Vinod Nair, head (research) at Geojit Financial Services. "Markets started the week on a firm note and gained over half a per cent, in continuation of the prevailing trend. Firm global cues triggered an upbeat start in Nifty and it almost retested the previous high of 18,000 mark in early trade and remained range-bound thereafter. Strong traction in the realty, IT and media pack combined with noticeable buying on the broader front kept the participants busy," said Ajit Mishra, V-P (research), Religare Broking Ltd.

Foreign institutional investors (FIIs) were net buyers to the tune of Rs2,132.42 crore on Friday, as per exchange data.

"The most important bullish factor that has caused and is sustaining India's market outperformance is the strong growth recovery underway in India now. RBI's report which puts bank credit growth now running at 15.5 per cent is an endorsement of this fact.