Sensex up by over 80 pts on rally in auto and IT counters

Mumbai, Feb 25 : Although the benchmark Sensex pared its early smart gains, a rally in auto and IT counters helped it to snap a two-day losing streak with a gain of over 80 points on the back of recovery in global markets and the stimulus package announced by the government.

The Bombay Stock Exchange 30-share bellwether index touched a high of 8,995.04 in mid-afternoon trade but fell back to settle the day at 8,902.56, still showing a rise of 80.50 points or 0.91 per cent over the previous close. At the day's high level, it was up by nearly 173 points.

The broad-based 50-issue Nifty of the National Stock Exchange also recouped by 28.60 points or 1.05 per cent to 2,762.50 from its last close.

Asian indices ended firm with a rise of 0.15 per cent to 2.65 per cent while European markets also resumed firm due to smart rise on Wall Street yesterday chiefly due to the US Federal Reserve Chairman's statements against the nationalisation of banks.

Market players attributed the late fall in the Sensex to profit-selling by operators ahead of the expiry of the derivatives contract tomorrow.

The government on Tuesday cut excise duty and service tax, entailing a revenue loss of nearly Rs 30,000 crore, as part of the interim budget ahead of the general elections. PTI