Closing: Sensex rally 1.47% higher; ends at 9,832

Closing: Sensex rally 1.47% higher; ends at 9,832

Mumbai: Indian shares benchmark Sensex closed 1.47% higher on Tuesday, 16 December as buying revived among local investors near closing.

Markets had commenced the day with negative trading and most of the day remained choppy with weak cues from Asia markets, which later surged with news that US Federal Reserve was to cut interest rates to 0.5%.

The 30-share BSE index ended 144.59 points higher at 9,832.39 points, led by gains in Reliance Industries, Oil and Natural Gas Corp (ONGC) and PSU banks.

The broad based 50-issue NSE index rose to 3,051.75 points, higher by 60.55 points.

Initial sentiment reflected the overnight losses of Wall Street as Senate remained deadlocked over $15 billion auto industry bailout package. The alleged fraud by New York investment manager Bernard Madoff also caused negative sentiments in world markets as his exposures hit top banks worldwide.

Reports of likely cut in fuel prices by government came in early afternoon after which Sensex regained to make up for initial losses.

ONGC topped profits for the day by rising 6.07% to Rs713.15 followed by Grasim Industries Ltd (4.59%, Rs1,227.60), ACC Ltd (4.34%, Rs535.65) and Tata Motors (4.33%, 164.95).

Among the banking sector HDFC Bank Ltd rose by 4.10% to Rs984, State Bank of India followed close at Rs1,238.15, a rise by 2.80%.

Meanwhile, Hong Kong’s Hang Seng index ended 1% higher and Japan’s Nikkei ended in red, lower by 1.12%.