7.30PM Mumbai - India shares gained as investors ignored global markets volatility.

Market Sentiment

Indian stocks rallied on Friday in the late trade on fresh buying despite the latest data showing an increase in inflation.

The benchmark Sensex index gained 2.6% or 403.17 at 15,760.52 levels. At close of the day of the 30 stocks in Sensex, 24 index shares advanced while 6 shares declined.

In the broader markets, the National Stock Market index Nifty advanced 2.6% or 122.20 at 4,745.80 levels.

On the BSE trading 1,473 shares declined, 1,202 shares advanced and 62 shares remained unchanged.

Real estate shares staged a comeback after declining for the most sessions during the week. IT stocks advanced on fresh buying while metal stocks gained as government approved the new mining policy.

The implementation of National Mineral Policy 2008 is likely to attract foreign direct investment of $250 million per year in the mining sector during the next five years.

Banking shares gained despite the latest data showing an increase in inflation.

Inflation rose to over nine-month high at 5.11% for the week ended March 1, as a result of rise in prices of some manufactured items and aviation turbine fuel, dampening hopes of interest rate cuts by the central bank to boost the declining industrial production.

The wholesale price index-based rate stood at 5.02% in the previous week and 6.51% in the corresponding week a year earlier.

This is the second consecutive week that the inflation rate crossed the 5% mark, the target set by the central bank.

Turnover

Daily turnover on the BSE stood at 5,880 crore rupees and on National Stock Market was at 13,587 crore rupees.

Reliance Natural Resources was the most active stock on the BSE with a turnover of 305.11 crore rupees followed by Reliance Petroleum, Reliance Industries, GSS America Infotech, and Bajaj Holdings & Investment.

Economic News

Finance minister Chidambaram on Friday forecasted the economy will maintain growth levels of above 8.5% in the coming years. The minister also said in parliament that the present volatility in the local stock market reflected global markets conditions.

Reliance Update

Reliance Energy gained 13% to 1,353 rupees and led the advancers in the Sensex index. Reliance Industries rose 4.4% to 2,340.20 rupees.

Gainers and Decliners