Sensex ends up 145 pts

Sensex ends (provisional) at 16,931 - up 145 points. Nifty ends up 48 points at 5,098.
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(Updated at 1416 hrs)

Sustained buying in rate sensitives, a day ahead of the RBI monetary policy, along with strong cues from global markets have helped the Indian bourses to trade firm in late-noon trades. The Sensex after touching a high of 17,104 has pared some of its gains. The index is now up 218 points at 17,004. Nifty is up 71 points at 5,120.

Markets would be looking towards the Reserve Bank of India's monetary policy review tomorrow for direction. RBI, in a continued effort to tame inflation, may hike rates by 25 bps feels bankers and analysts.

The markets are likely to be volatile tomorrow as traders roll-over positions for the derivatives expiry. Thursday markets are closed and Wednesday will have a special mahurat trading on the Indian bourses.

Asian markets rose on the back of hopes that European leaders are closer to a solution of the Euro-zone debt crisis. The Hang Seng surged 4% to 18,772. Seoul Composite, Straits Times and Taiwan Weighted gained 2-3% each.

BSE auto, banking and IT indices jumped nearly 2% each. Heavyweights, ICICI Bank and Reliance contributed the most to the Sensex's upmove. Reliance rose 1.3% at Rs 846. ICICI Bank jumped 2.3% to Rs 890.

Tata Motors from the auto pack remained the major gainer and was up 4.3% at Rs 186. Bajaj Auto and Maruti Suzuki gained 1-3% each. ONGC jumped 4% to Rs 276. Among other prominent gainers were TCS, Hindustan Unilever and Hindalco.

Meanwhile, Larsen & Toubro and Coal India remained in red. L&T shed 2% to Rs 1,308. Coal India was down half a per cent at Rs 327.

BSE market breadth was marginally positive. Out of 2,771 stocks traded, 1,375 advanced while 1,278 stocks declined.