Sensex breaches 18K after 6 months

Dalal Street rallied to its highest level in more than six months on speculation that the RBI will cut interest rates next week after a muted industrial production growth,and as a German court cleared the way for a permanent euro zone rescue fund

Dalal Street rallied to its highest level in more than six months on speculation that the RBI will cut interest rates next week after a muted industrial production growth,and as a German court cleared the way for a permanent euro zone rescue fund.

The Sensex shot up to a days high of 18,012.89 before ending at 18,000.03,a gain of 147.08 points. The Sensex last closed above 18,000 on February 23. The broad-based Nifty closed 41 points,or 0.76 per cent higher at 5,431.

On the global front,European markets were trading at their 14-month high after the Germans court decision. The US futures were also trading higher. Investors are now looking forward to the FOMC meeting. In India,investors are waiting for the inflation data for the month August and the RBI policy meet, said Alex Mathews,Head Research,Geojit BNP Paribas Financial Service.

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As many as 21 stocks in Sensex closed with gains. The undercurrent was also positive amid expectations of additional stimulus measures from the US Federal Reserve at the end of its two-day policy meeting that kicks off today, said Amar Ambani,Head of Research,IIFL.

Meanwhile,the rupee also rose to a three-week high on Wednesday,tracking gains in global risk assets after Germanys top court gave its approval to the eurozones rescue fund.

The rupee closed at 55.21/22 per dollar as against its previous close of 55.34/35.

Bull run

* The Sensex last closed above 18,000 on February 23

* As many as 21 stocks in Sensex closed with gains

* The rupee also rose to a three-week high at 55.21/USD