- Brokers said investors speculated over the possibility that central banks will unleash more stimulus measures to bolster financial markets, which led to a firm trend at other Asian markets, lifting spirits here.
- Oil prices extended their rally in Asia today buoyed by hopes of extra stimulus measures in the eurozone and Japan that could help boost demand in the face of a global supply glut.
The benchmark BSE Sensex climbed over 159 points in early trade on Monday, extending its weekend rally on continued buying amid a firming trend at other Asian bourses on indications of additional central bank stimulus.
Besides, covering-up of short positions in view of an approaching January expiry in the derivatives segment on Thursday influenced mood.
The 30-share index rose 159.47 points, or 0.65 per cent, to 24,595.13, with all sectoral indices led by auto, healthcare, capital goods, metal and banking trading higher by up to 1.12 per cent.
The gauge had rallied 473.45 points in the previous session
The NSE index Nifty too edged higher by 60.40 points, or 0.81 per cent, to 7,482.85.
Brokers said investors speculated over the possibility that central banks will unleash more stimulus measures to bolster financial markets, which led to a firm trend at other Asian markets, lifting spirits here.
Stock markets will remain closed tomorrow for the Republic Day.
Among other Asian markets, Hong Kong's Hang Seng was up 2.47 per cent and Japan's Nikkei gained 0.67 per cent while the Shanghai Composite index was trading higher 0.60 per cent in early trade today.
Oil prices extend rise above USD 32 in Asia:
Oil prices extended their rally in Asia today buoyed by hopes of extra stimulus measures in the eurozone and Japan that could help boost demand in the face of a global supply glut.
Prices ended on a buoyant note Friday, with the US benchmark West Texas Intermediate (WTI) for March delivery soaring nine percent to USD 32.19 a barrel, while Brent soared 10 per cent to USD 32.18.
The upward momentum continued in Asia today, with WTI up 14 cents, or 0.43 per cent, at USD 32.33 and Brent 17 cents, or 0.53 per cent, up at USD 32.35 by 0335 GMT.
Michael McCarthy, chief market strategist at CMC Markets Australia, said a report showing that private sector business activity in the eurozone continued to expand in January boosted hopes for oil demand catching up with the oversupply.
Data monitoring company Markit said its closely watched composite Purchasing Managers Index (PMI) fell to 53.5 points in January from 54.3 in December. While the figure was an 11-month low it was still well above the 50-point level that separates growth and contraction in the 19-nation bloc.
On Thursday European Central Bank chief Mario Draghi signalled further stimulus measures for the region, while a report in the respected Nikkei business daily Friday said the Bank of Japan is also considering extra measures.
"The demand side of the situation was what was worrying us. Now that we've seen evidence to support that, we've had a lot of short-term interests in the market having to cover. It's a good old-fashioned scramble," he told AFP from Sydney.
"Combined with a strong economy in the US, the demand side of the equation remains on track to catch up with supply about 12 months out."
Sanjeev Gupta, head of the oil and gas practice at professional services firm EY, said prices also got a boost from the severe snowstorm that battered the US East Coast over the weekend as demand for heating oil rose.
However, some analysts remain wary of calling a bottom, especially with Iranian crude poised to return to the market within months following the lifting of western economic sanctions linked to its nuclear programme.
With AFP-PTI inputs