Key benchmark indices extended gains to hit day's high in mid-morning trade led by buying in metal, banking and realty stocks. The barometer index BSE Sensex breached the psychological 9,000 level as index heavyweight Reliance Industries surged. Overnight rally in US stocks, rally in Asian stocks and buying by foreign funds boosted the domestic bourses. The BSE 30-share Sensex was up 191.86 points, or 2.16% and was near the day's high. The barometer index today hit its highest level in nearly a month.
Expectations of further cut in policy rates by the central bank remain with sharply falling headline inflation.
Foreign institutional investors (FIIs) bought shares worth a net Rs 415.12 crore on Tuesday, as per the provisional data released by the stock exchanges. The substantial buying follows easing of FII selling vigour in the past few days.
But the upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009.
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