Mumbai: The BSE benchmark Sensex on January 14 closed to two-year high of 19,906.41 points led by buying in banking and software stocks following postponement of GAAR amid hopes of interest rate cut after inflation declined to three-year low of 7.18 per cent.

The Sensex ended 242.77 points up, or 1.23 per cent, to close at 19,906.41, a level last seen on January 6, 2011, soon after the government postponed General Anti Avoidance Rule (GAAR) for two years till April 2016.

Similarly, the National Stock Exchange index Nifty shot up by 72.75 points, or 1.22 per cent, to 6,024.05 as heavy-weight Infosys drove the software sector stocks higher after posting attractive revenue guidelines.

Realty and banking stocks were also star-performers after lower-than-estimated government inflation boosted speculation that the Reserve Bank of India might cut interest rates in its third quarter review of monetary policy on January 29.

Inflation based on wholesale prices declined to 7.18 per cent in December.

"The market sentiment was boosted by Finance Minister P Chidambaram's decision to defer implementation of General Anti-Avoidance Rules (GAAR) from April 2014 to 2016," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.

"Post the December inflation number, expectations of a rate cut have further strengthened the sentiment, he added.

Infosys stocks surged by 94.65 to 2,807.25 and CMC Ltd by 36.40 to 1,371.25 driven by reports of better third quarter earning results. Tata Consultancy, HCL Technologies, Mahindra Satyam and Tech Mahindra were other gainers.

In the banking sector, State Bank of India shot up by 8.50 to 2,499.45, ICICI Bank by 19.40 to 1,184.70, HDFC Ltd by 15.60 to 825.20 and Bank of India by 17.50 to 381.50.

The rate-sensitive realty sector index gained the most by rising 5.01 per cent to 2,252.25 as segment major DLF Ltd shot up by 17.80 to 247.85. The IT sector was second best by adding 2.57 per cent to 6,413.25 followed by banking index by 1.07 per cent to 14,653.72.

The rally was partly supported by a firming trend in the Asian region and higher opening in Europe after Federal Reserve Bank of Chicago said the central bank should continue to support the global economic recovery.

Markets @ 10.30 AM (PTI)

The BSE benchmark Sensex today rallied by 163 points in the late morning trade on January 14 on renewed buying from investors and operators on the back of persistent foreign capital inflows coupled with higher Asian advices.

Shares of IT, technology, banking, capital goods, consumer durables and realty sectors rose on good buying enquiries.

The Sensex resumed higher at 19,689.09 and shot up further to a high of 19,830.56 before quoting at 19,826.72 at 1030hrs, showing a net gain of 163.08 points, or 0.83 per cent from its last weekend's close.

The NSE 50-share Nifty also firmed up by 42.70 points or 0.72 per cent to 5,994.00 at 1030hrs.

Major gainers were Infosys (3.89 per cent), TCS (2.31 per cent), ICICI Bank (1.65 per cent), ONGC (1.44 per cent) and Wipro (1.17 per cent).

Foreign institutional investors (FIIs) bought shares worth a net Rs 825.18 crores on last Friday as per provisional data from the stock exchanges.

Most Asian stocks rose in the early trade. Key benchmark indices in China, Hong Kong, Indonesia and South Korea rose by 0.25 per cent to 2.06 per cent while indices in Singapore and Taiwan fell by 0.4 per cent to 0.58 per cent.

Markets @ 09.00 AM(PTI)

The BSE benchmark Sensex on January 14 gained nearly 67 points in early trade on selective buying by funds ahead of inflation data, amid a firming Asian trend.

The 30-share barometer rose by 66.70 points, or 0.34 per cent, to 19,730.34 led by IT, technology and consumer durables sector stocks. The index had ended almost flat at 19,663.64 points on Friday.

The wide-based National Stock Exchange index Nifty moved up by 14.65 points, or 0.25 per cent per cent, to 5,965.95.

Also Read

Commodities Which Will Outperform In 2013

How to Invest In Commodities in India?