Sensex rallies 170 points on short-covering, Asian cues

Mumbai: Market benchmark Sensex surged about 170 points in early trade today, building on its yesterday's recovery, as investors and domestic institutions widened their bets amid positive global cues.

Short-covering by speculators in view of tomorrow's November monthly derivatives contract expiry added to the upward move.

The BSE 30-share barometer advanced 169.71 points, or 0.65 percent, to 26,130.49. The gauge had gained 195.64 points in the previous session.

Sectoral indices led by capital goods, metal and realty stocks were in the green, adding up to 2 percent.

The NSE Nifty advanced 52.90 points, or 0.66 percent, to 8,055.20.

Brokers said increased buying in select stocks coupled with covering-up of outstanding short positions ahead of the expiry had a positive impact.

A firm trend on other Asian bourses following record closing at the US markets too influenced sentiments, they said.

In the Asian region, Hong Kong's Hang Seng was up 0.30 percent, while Shanghai Composite index edged higher 0.23 percent in early trade today. Japanese financial markets are closed today for a public holiday.

The US Dow Jones Industrial Average finished above 19,000 for the first time yesterday by gaining 0.4 percent to 19,023.87 propelled by expectations of pro-growth policies.