Sensex surpasses 85,000 for first time as markets stage recovery

The Indian equity benchmarks staged a recovery after falling in early trading led by gains in metal stocks like Tata Steel, JSW Steel and Hindalco after China announced a slew of stimulus measures to boost the economy. China is largest market for Indian metal makers. The Sensex rose as much as 328 points from day's lowest level to hit an all-time high of 85,048 and Nifty 50 index touched record high of 25,975.

As of 9:59 am, the Sensex was up 114 points at 85,043 and Nifty 50 index was up 29 points at 25,968.

Chinese stocks and bonds rallied and Asian stocks hit 2-1/2-year highs as Governor Pan Gongsheng announced plans to lower borrowing costs and inject more liquidity into the economy, as well as to ease households' mortgage repayment burden.

Overnight, US stocks closed modestly higher on Monday as investors assessed whether a trend will develop in the week following the Federal Reserve’s rate cut.

Back home, eight of thirteen sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's over 2 per cent gain. Banking, auto, financial services, healthcare and oil & gas shares were also witnessing buying interest.

Meanwhile, FMCG, ITC, PSU banking and real estate stocks were facing selling pressure.

Mid- and small-cap shares were trading largely on a flat note as Nifty Midcap 100 rose 0.24 per cent and Smallcap 100 index advanced 0.13 per cent.

Bajaj Finance was top Nifty loser, the stock fell 1.22 per cent to Rs 7,502. Infosys , Shriram Finance, HDFC Life, SBI Life, Wipro , Hindustan Unilever , HCL Technologies, IndusInd Bank and Axis Bank also fell between 06-1 per cent.

On the flipside, Tata Steel, Hindalco, JSW Steel , Nestle India, Tata Consumer Products, Tata Motors, Power Grid and Adani Enterprises were among the gainers.

(With Reuters inputs)