Sensex extends gains, up 224 pts in early trade

Mumbai, May 20 : Continuing its winning streak for the fourth straight session, the benchmark BSE Sensex spurted by another 224 points in early trade after stocks of power, capital goods, PSUs and banking sectors rallied on sustained foreign fund inflows amidst a firming trend overseas.

The 30-share Sensex shot up by 224.11 points, or 0.91 per cent, to trade at 24,587,16. The gauge had climbed nearly 548 points in the past three sessions after the BJP-led NDA received a clear mandate in the Lok Sabha polls.

The 50-share NSE Nifty gained 90.10 points, or 1.24 per cent, to quote at 7,353.65.
Brokers said buying momentum picked up further on sustained foreign funds inflows after credit rating agency Moody’s said the BJP-led NDA’s victory in polls is credit positive for India as a stable central government is expected to address economic woes.

Besides, a firming trend at other Asian markets following overnight gains in US markets also influenced sentiment here, they added.
Major contributors to the rally were Infosys, TCS, Dr Reddy, Sun Pharma, Cipla, NTPC, Bharti Airtel, HDFC Ltd, HIndustan Unilever, SBI, Sesa Sterlite, Tata Steel and Tata Power.

Among other Asian markets, Hong Kong’s Hang Seng rose 0.24 per cent, while Japan’s Nikkei was up by 0.86 per cent in early trade today.

The US Dow Jones Industrial Average ended 0.12 per cent higher in yesterday’s trade.