Sensex rises over 100 points, Nifty nears 6200

The BSE Sensex opened lower on Thursday, but quickly rebounded, rising over 100 points to take out the 20,300 levels. The 50-share Nifty gained another 40 points and neared the key 6,200 mark.

Indian markets have seen strong gains since mid-April, mainly on account of sustained flows by foreign institutional investors. FIIs bought equities worth Rs1,646 crore on Wednesday. Hopes of monetary easing, after headline inflation hit a 41-month low, have attracted traders, further fuelling the rally.

The Sensex traded 90 points higher at 20,303, while the Nifty advanced 34 points to 6,180 as of 09.59 a.m. The rupee also inched up against the dollar and traded at 54.7250.

Banking stocks were the top gainers for a second straight day. Other rate sensitive stocks such as realty and autos also saw buying interest.

Private lender ICICI Bank rose over 2 per cent, while State Bank of India - the country's largest lender - traded 1.8 per cent higher.

41 stocks traded higher on the Nifty, led by drugmaker Dr Reddy's, which traded with over 3 per cent gains. Cement maker Jaiprakash Associates traded 3 per cent higher, while Reliance Infra rose 24 per cent. Dr Reddy's and Reliance Infra reported Q4 numbers earlier this week.

IT stocks came under selling pressure. TCS, India's number one outsourcer, was the top Nifty loser, down over 1 per cent. Infosys traded 0.8 per cent lower.