Indian share prices surged 1.43 percent Tuesday as foreign funds brought blue chips on prospects of strong economic growth despite concerns over a possible rate hike by the US Federal Reserve, dealers said.
The Mumbai stock exchange's 30-share Sensex rose 130.23 points to close at 9,263.90. Volumes reached 43.53 billion rupees (946 million dollars) as 1,162 stocks gained, while 1,327 declined.
"Foreigners lapped up shares across key sectors as perceptions of a strong economic growth for the second half to March continues to attract investments in equities," said Vijay Tilakraj, chief dealer at Prabhudas Liladhar.
He said reports that the Centre for Monitoring Indian Economy, a private think-tank, had also revised upwards its economic growth forecast for 2005-06 also helped boost sentiment.
India's economy expanded by 8.1 percent in the quarter ended September and expectations are that it would maintain the same growth during the next two quarters.
Foreign funds have been the key driver of the Indian stock markets, investing nearly nine billion dollars since January.
Leading the rally was vehicle manufacturer Tata Motors, followed by other blue chips, including select software companies.
Tata Motors rose 5.99 percent or 35.40 rupees to 626.30, passenger car maker Maruti Suzuki climbed 2.07 percent or 13.40 rupees to 662.30.
Software firm Satyam Computer rose 2.35 percent or 15.75 rupees to 686.60, while cigarette maker ITC gained 2.60 percent or 3.60 rupees to 142.
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