Sensex crosses 61k after 10 mths

Mumbai: The sensex rallied above the 61,000 mark on Tuesday after over 10 months, even as market players prepared for a volatile week. As the overnight US markets traded steady and closed only marginally lower, Dalal Street opened higher and remained in a narrow range to close 375 points up at 61,121.

The strong rally in the US markets in recent weeks and robust quarterly earnings numbers by top Indian corporates have restored confidence among domestic investors about the sustainability of the market at current levels. Continuous buying by foreign funds has also boosted confidence, market players said.

During the week, there are several important meetings that could set the tone for the global market for this month. On Wednesday, the US Federal Reserve’s rate setting committee is meeting and market is expecting it to raise interest rate by another 75 basis points, mainly to tame a runaway inflation in the world’s largest market.