Sensex marks biggest gain this year, closes above 21,000

It was a stellar rally on Dalal Street as the Sensex gained over 400 pointsed by gains in IT, banking, capital goods and oil & gas stocks. The Sensex ended up 375.72 points or 1.81 percent at 21134.21, and the Nifty closed at 6272.75, up 101.30 points or 1.64 percent.

After closing on a muted note last week,marketsbounced back with strong momentum led by aggressive buying seen in frontline technology stocks after Infosys’ results on Friday for the quarter ended December 31 which was above analysts’ forecast.

[caption id=“attachment_1268411” align=“alignright” width=“380”]  Reuters[/caption]

Tracking the momentum, as much as four stocks hit their respective 52-week high on the BSE Sensex - Dr Reddy’s Laboratories,Infosys,Tata Consultancy ServicesandWipro.

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The US Federal Reserve may keep its liquidity tap open for longer, but that is not going to help the economy, Nobel laureate and economist Joseph Stiglitz, who has been a long-standing critic of the Fed’s monetary policy, has said.

In an interview with _CNBC-TV18’_s Latha Venkatesh, Stiglitz reiterated what he has always maintained: that the answer to US’s economic woes is a fiscal stimulus and not monetary stimulus.

“The point about quantitative easing, tapering is that monetary policy has only a very limited effect in the United States. It has global repercussions but the effect in creating jobs in the United States is very low,” Stiglitz said.

The fate of 32 coal blocks remained undecided as the Cabinet Committee on Economic Affairs (CCEA), which met today, sought more time. The CCEA was expected to take a decision after the Supreme Court observation last week that 32 coal blocks were lying idle for more than stipulated time given for their development.

Sources told CNBC-TV18 that the government will look at each coal block individually before replying to the Supreme Court. On Thursday, attorney general Goolam E Vahanvati has admitted before a three-judge bench headed by Justice RM Lodha that something went wrong with the coal blocks allocation.

Stocks in news:

Ranbaxy labs came under pressure today, down 5 percent. The US Food and Drug Administration (FDA) has raised concerns about the manufacturing practices at a factory owned by Ranbaxy Laboratories , the drugmaker said on Monday, sending its shares down to nearly a one-month low.

SpiceJet is down 0.81 percent. Promoters’ stake in low-cost carrier SpiceJet will rise to 58.5 percent if they decide to convert the 6.4 crore warrants issued recently, into equity at par.

Telephone operatorMTNL intends to cut its debt from over Rs 13,000 crore currently to about Rs 5,000-6,000 crore by next March, the firm’s CMD AK Garg told CNBC-TV18.