Sensex builds on gains, surges 249 pts in early trade

Mumbai :The benchmark BSE Sensex climbed 249 points in early trade on Tuesday, extending its weekend rally on continued buying amid a firming trend overseas after a slowdown in US job creation dimmed expectations of an interest rate rise by the Fed this month.

Moreover, services sector growing at its fastest pace in over three-and-half years in August and the rupee rising against the dollar also supported trading sentiment.

The 30-share index surged 248.75 points or 0.87 per cent to 28,780.86 with all the sectoral indices led by realty, banking and auto trading higher.

The gauge had rallied 108.63 points in the previous session on Friday. Stock exchanges remained closed yesterday on account of ‘Ganesh Chaturthi’.

The NSE index Nifty too climbed 68.10 points or 0.77 per cent to 8,877.75.

Brokers said continued foreign fund inflows and persistent buying by investors amid a firming trend overseas buoyed trading sentiment.

A monthly PMI survey showing that India’s services sector growth touched the highest level in over three-and-a-half years of 54.7 in August, from 51.9 in July, too lifted the mood.

Among other Asian markets, Hong Kong’s Hang Seng was up 0.39 per cent and Japan’s Nikkei gained 0.22 per cent, however, Shanghai Composite Index shed 0.10 per cent in early trade.