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Sensex up 218 pts on firm Asian cues

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Agencies

Posted: Feb 06, 2012 at 1041 hrs IST

Mumbai The BSE benchmark index Sensex today gained 218 points in early trade today on sustained buying by funds and retailers amid a firming trend in Asian markets.

The 30-share index, which had gained over 741 points in last four trading sessions, shot up by 218.01 points, or 1.24 per cent, to 17,822.97 with all sectoral indices gaining up to 2.13 per cent.

The wide-based Nifty of the National Stock Exchange moved up by 59.60 points, or 1.12 per cent, to 5,385.45.

Brokers said sustained buying by funds and retailers amid firming trend on other Asian bourses following strong gains on Wall Street last week after robust US jobs data mainly boosted the trading sentiment.

In Asia, Hong Kong's Hang Seng Index rose by 1.13 per cent and Japan's Nikkei Index by 1.05 per cent in early trade today.

The Dow Jones Industrial Average ended higher by 1.23 per cent on Friday's trade.

Stocks More on Kingfisher Airlines

Company INFO More on Hindustan Unilever

STOCKS (PREOPEN): Sensex seen up; Hindustan Unilever shares may rise

Sensex is expected to open higher on Monday, bolstered by surprisingly robust U.S. employment report that offered proof of a healthier global economy and boosted world markets.

Asia is already responding to the U.S. numbers, said K.K. Mital, head of portfolio management at Globe Capital Market in New Delhi. Also the court's ruling on Chidambaram in 2G scam is also beneficial to the government and should help a rally.

An Indian court dismissed a petition on Saturday accusing Home Minister Palaniappan Chidambaram of signing off on the sale of telecoms licenses at below-market prices that may have cost the government up to $36 billion in lost revenues.

The U.S. economy created more jobs in January than even the most optimistic forecast, adding to a sense the global economy started the year in better shape than hoped, especially with new signs of life in Europe.

The MSCI's broadest index of Asia Pacific shares outside Japan was up 0.38 percent by 0239 GMT, while Japan's Nikkei rose 1.05 percent.

The Nifty India stock futures traded in Singaporewere up 0.96 percent, pointing to a higher opening for the Indian market.

Hindustan Unilever, India's largest consumer goods maker and a unit of Anglo-Dutch conglomerate Unilever Plc, could rise on expectations for higher earnings. The company is expected to report an 11 percent rise in December quarter net profit.

On Friday, the main 30-share BSE index posted its fifth consecutive weekly rise, its best run in more than a year, bolstered by hopes of interest rate cuts by the central bank, positive economic data and increased foreign fund inflows.

STOCKS TO WATCH

* Piramal Healthcare Ltd may climb after the drugmaker said on Saturday it would buy a 5.5 percent stake in Vodafone's India unit from Essar for 30 billion rupees ($616.14 million), taking its total stake in the mobile company to about 11 percent.

* Kingfisher Airlines Ltd may fall after it said late on Friday it has put on hold plans to join the global oneworld alliance that could have boosted its earnings by connecting it to over 800 cities around the world.

FACTORS TO WATCH

* Euro softens as Greek deadline looms

* Oil up sharply on U.S. jobs surge, Iran

* Stocks rise as U.S. jobs gain outweighs Greece

* Nasdaq vaults to 11-yr high on surge in US jobs

Stocks More on Piramal Healthcare

Company INFO More on Essar

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