Led by Reliance Industries, the BSE Sensex climbed 2.1 per cent on Monday, extending a winning streak to a fourth consecutive session on firmer global stocks after the Group of 20 pledged to keep stimulus in place until there was assured recovery and Prime Minister Manmohan Singh commited to pursue financial sector reforms. The 30-share BSE Sensex closed up 340.44 points at 16,498.72, its best close in two weeks. The 50-share NSE index closed 2.1 per cent higher at 4,898.40.

The markets had opened on a bullish note on the back of positive cues from the global markets and moved up further. “What boosted the market was the decision taken by the Finance Ministers and the central bankers from G20 countries to keep the stimulus packages till the recovery seen in their economies strengthens further. The Prime Minister said the government will push legislative changes like raising the foreign stake limits in insurance sector to 49 per cent from 26 per cent and opening the doors of pension sector to the private and foreign players,” said an analyst with Geojit BNP Paribas.

“This played a vital role in the uptrend with banking, realty, FMCG, auto and metal attracting buying interest. On the stock specific front Reliance Industries moved up on the back of the news that they are planning an overseas acquisition,” he said. Reliance, which has the most weight in the main index, rose 3.5 per cent to Rs 2,024.55 following reports that it was close to a nearly $6 billion overseas acquisition and the likely target was the assets of bankrupt petrochemicals firm LyondellBasell.

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