Sensex gains 117 points on US debt deal

MUMBAI: Snapping a four-day fall, the BSE benchmark Sensex on Monday rose 117 points on firm global cues after the U.S. lawmakers reached an agreement at the eleventh hour to raise the country’s debt ceiling to avoid a default.

The Bombay Stock Exchange’s 30-scrip index, which had lost over 674 points in the last four runs, rose by 117.13 points, or 0.64 per cent to 18,314.33, with IT, auto and heavy machinery stocks leading the recovery.

The gauge touched the high of 18,440.07 intraday. Brokers attributed the widespread recovery in stocks to a firming trend in Asia after the U.S. President Barack Obama announced that the country had reached an agreement to reduce the budgetary deficit and avert a debt default.

Good exports data at home further supported the market sentiment. The rally was led by heavy trading in Sensex leader Reliance Industries, Infosys, SBI, and Tata Motors, Tata Steel, Mahindra and Mahindra, Larsen and Toubro among others.

IT sector was the best performer, rising 0.86 per cent on expectations that a fast recovery overseas front would boost demand for software business. Tech sector index followed next, rising 0.81 per cent, and auto sector index by 0.79 per cent.

Broad-based National Stock Exchange’s index Nifty closed up 34.80 points, or 0.63 per cent at 5,516.80, after touching day’s highest at 5,551.90.

Keywords: Latest business news, business, Sensex, Bombay Stock Exchange,Reliance Industries, Infosys, SBI, and Tata Motors, Tata Steel, Mahindra and Mahindra, Larsen and Toubro