Sensex ends higher by 183 pts on positive US cues

Mumbai (PTI): A sharp rally led by index heavyweights Reliance Industries and ICICI Bank lifted the BSE benchmark Sensex by 183 points to 8,343.75 on the Bombay Stock Exchange (BSE) here on Thursday on hopes of more rate cuts by the apex bank in view of the fall in inflation.

Inflation fell for the sixth consecutive week, to 2.43 per cent, the lowest in over six years, as prices of food items like pulses, dairy products and edible oil softened further in the last week of February.

Industrial output showed negative growth for the second month in a row, the decline being 0.5 per cent in January, highlighting that stimulus packages failed to perk up manufacturing as well as mining so far.

Trading resumed higher at 8,274.78 on the back of the overnight rally in US markets on hopes of additional government support for the tumbling economy.

The benchmark index shot up further to 8,439.71 against Monday's close of 8,160.40.

Similarly, the 50-issue Nifty of the National Stock Exchange shot up by 44.30 points or 1.72 per cent to close at 2,617.45.