Sensex scales fresh two-year high led by RIL

Mumbai: The BSE benchmark Sensex on Monday rose to fresh two-year high of 20,101.82 points gaining 63 points on goody buying, particularly in Reliance Industries Ltd (RIL) shares, triggered by strong quarterly earnings by corporates. Extending gains for the third straight day, the Sensex settled at 62.78 points, or 0.31 per cent, up at 20,101.82, which si its highest level since January 6, 2011. In the previous two days it had gained over 221 points.

The broad-based National Stock Exchange index Nifty rose by 17.90 points, or 0.30 per cent, to 6,082.30, while Nifty futures index breached 6,100-level for first time since January 6, 2011 as investor mood remained bullish. Brokers said quarter earnings posted by Reliance Industries and other companies helped boost the sentiment.

RIL stocks rose by 2.35 per cent to Rs 920.05, after surging to 52-week high of Rs 954.80 intra-day. The company had posted 24 per cent jump in its net profits for the third quarter (October-December).

Brokers said the rally is led by oil companies whose shares are attracting goody buying in the wake of government allowing refiners to raise diesel prices. In 30-BSE index components, 17 gained while 13 ended with losses.

The oil and gas and capital goods sector indices were in the limelight. BHEL shot up 2.25 per cent to Rs 231.65 and Larsen and Toubro by 2 per cent to Rs 1,567.25. Maruti Suzuki gained 1.87 per cent to Rs 1,574.65 ahead of their earnings later this week. The market sentiment was further bolstered on higher opening in European markets as eurozone finance ministers are meeting for the first time in 2013 to tackle the sovereign debt crisis.

At the close of Monday's trade, Reliance Industries Ltd scrip was up 2.35 per cent at Rs 920.05 on the BSE. During the day, shares of the country's most valuable firm had surged up to 6.21 per cent at Rs 954.80 -- its 52-week high.

On NSE, the scrip settled 2.19 per cent higher at Rs 919.90. Rise in the stock was significant in driving the BSE 30-stock index, Sensex, 62.78 points up at 20,101.82.

"The quarterly results of Reliance Industries beat street expectations," said Milan Bavishi, Head Research, Inventure Growth & Securities. RIL commands a market value of Rs 2,97,684 crore - the highest for any listed company in the country.