Wiping off initial losses, the BSEbenchmark Sensex today surged by nearly 161 points to atwo-week high of 19,413.54 as shares of Infosys and TataConsultancy Services climbed to record high levels on optimismthe US will soon be back on growth track.
After a lower start, the Sensex spurted by 160.93points, or 0.84 per cent to 19,413.54. The gauge has nowgained 536 points in three sessions.
The broad-based National Stock Exchange index Nifty roseby 44.70 points, or 0.77 per cent to 5,863.30, after openinglower at 5,801.30.
Infosys surged 1.29 per cent to Rs 3,004.75, its highestlevel after March, 2011 and Tata Consultancy Services, thelargest software exporter closed at a new high by adding 2.10per cent to end Rs 1,590.45.
Engineering major L&T shot up by 2.08 per cent to Rs1,463.45, continuing its rise after CLSA Asia-Pacific Marketsupgraded rating on the counter today. Goldman Sachs hadupgraded the stock on Monday.
Brokers said besides momentum in interest-rate sensitivestocks ahead of the RBI's policy review this month on hopes ofa rate cut, stocks of software companies surged on hopes of arecovery in the US growth and a better Europan trend beforecentral bank policy meetings in the region.
Indian software companies get over 50 per cent of theirrevenues from the US and European markets.
Traders said the Dow Jones Industrial Average hit a newhigh yesterday as the US service industry grew at the fastestpace in a year amid optimism the Federal Reserve will maintainstimulus measures to support the economy.
In 30-BSE index components, 20 stocks climbed while 10ended lower. The realty sector index gained the most by 1.68per cent to 2,069.08, followed by IT index by 1.66 per cent to7,059.60. The capital goods index rose by 1.59 per cent to9,676.88 and banking index by 0.86 per cent to 13,733.93.