Sensex rises 133 points in initial trade

Mumbai, June 05: The Bombay Stock Exchange benchmark Sensex rose by 133 points in initial trade today, extending yesterday’s rally, on sustained buying by funds and retail investors buoyed by hopes that the Government will revive the economy by boosting investment and accelerating reforms.

Buying activity also picked up on firming global markets as renewed hopes that the economy is reviving.

The 30-share index, which had gained 137.78 points in yesterday’s highly-volatile session, shot up by another 133.08 points to 15,141.76, as metal, PSU and capital goods sector stocks rose.

Similarly, the wide-based National Stock Exchange index Nifty, climbed 42.85 points at 4,615.50.

Stock brokers said indications that the Government is committed to reforms and it would revive economic growth by spending more on infrastructure sector, triggered all-round buying by funds.

They said Budget 2009-10, to be presented in early July, is expected to be focused on spurring growth.

Yesterday, the US Dow Jones Industrial Average closed 0.86 per cent higher.

The Japan’s Nikkei was quoting 0.75 per cent up and Hong Kong’s Hang Seng was a shade higher in morning trade today.

Among major gainers were, Larsen and Toubro up 2.18 per cent to Rs 1,487.60, RCom by 1.40 per cent to Rs 3,478, Reliance Infra by 0.67 per cent to Rs 1,282, Sterlite Industries by 2.53 per cent at Rs 678 and Tata Steel by 1.01 per cent at Rs 475.45.