Sensecx Jumps 283

The benchmark stock indices gained close to three per cent on Monday following higher domestic GDP growth of 7.1 per cent forecast for the current fiscal. The Sensex closed 283 points up at 9,584 while the Nifty closed 77 points higher at 2,919.

“The revised GDP growth rate and the optimism in the overseas markets about the Obama package led to short covering of positions here by the financial institutions,” said Mr Amitabh Chakraborty, President (Equity), Religare Securities.

Expectations of concessions in the vote-on-account later this month also boosted sentiment. Reliance Industries gained more than 3 per cent, on expectations of tax concessions for the gas production from the KG basin.

FIIs were net buyers of equities for Rs 285 crore, and domestic institutional investors net sellers for Rs 46 crore.

The metal index gained the most – 4.41 per cent on expectations of a recovery in the Chinese economy.