Sensex extends rally by 399 points on positive global cues

Inflows from foreign investors and across-the-board buying by the investors also helped the market sentiments.

Tracking positive cues from other Asian markets, the benchmark index Sensex extended its gains to scale a fresh intra-day high with a surge of 399 points in late morning trade on Monday on sustained buying in capital goods, banking, auto and power sectors.

The 30-share index resumed higher at 26,379.42 points and rose to as high as 26,620.22 at 1115 hours, showing a rise of 399.27 points, or 1.52 per cent, from its last close.

The NSE 50-share Nifty was also trading higher at 111.95 points, or 1.41 points, at 8,062.85 at 1115 hours.

Among major gainers, Tata Motors was up 6.92 per cent, HDFC 3.49 per cent, ICICI Bank 3.35 per cent, Larsen and Toubro 3.10 per cent, TCS 2.65 per cent, Tata Steel 2.57 per cent and HeromotoCo by 2.52 per cent.

The Foreign portfolio investors (FPIs) bought shares worth a net Rs 48.60 crore last Thursday, as per provisional data released by the stock exchanges.

In overseas markets, Asian stocks rose after prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of the last week's weaker-than-expected US employment data. Hang Seng, Straits Times, Nikkei and Taiwan were up, while Chinese market was closed for a holiday.

The US stocks closed on a positive note last Friday after a late-afternoon rally, but weak jobs data added to the worries about slowing down of the world's largest economy.