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Sensex crosses 19,000 mark

Indian equity markets rise in early session on strong cues from foreign markets

The Bombay Stock Exchange (BSE) Sensex and the National Stock Exchange Nifty crossed a landmark each during the early session of trading on Monday. While the Sensex breached the 19,000 level, the Nifty crossed 5,700 mark on strong industrial output numbers from Asian and the US economies.

At 11 am on Monday, the Sensex was 288 points up at 19,088, while the Nifty was 85 point up at 5,725. Banking stocks showed the sharpest jump in the early session as BSE Bankex and Bank Nifty had risen by close 3 per cent at 11 am. The small and mid cap stocks, however, lagged both the Nifty and the Sensex.

Asian equity markets also rose on Monday on the back of strong economic data in China and the United States. The news on agreement among global banking regulators to implement stricter Basel III norms also stoked positive sentiments in the market.

Japan’s benchmark Nikkei average rose 1.4 per cent, while the MSCI index of Asian shares outside Japan was up 1.6 per cent as strong economic numbers boosted investors’ confidence.

Data released on Friday showed US a sharp drop in US trade gap as also a surge in wholesale inventories in July. China’s factory output increased in August, according to data released on Saturday, showing that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.