Dalal St ends strong on hopes of QE3 stimulus

Stocks across the globe got a fillip in trade today after weaker than expected Q1 economic growth in the US raised expectations of another round of stimulus from the Federal Reserve.

Turnover was relatively weak as major participants opted to sit on the sidelines on lack of trading cues from China and Japan. European stocks rose on Monday as Spain reported its economy shrank less than the previous estimate in the first quarter.

A number of key regional bourses will be shut tomorrow for Labor Day/May Day holidays. This includes India, China, Hong Kong, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. The Japanese share markets will be closed on Thursday and Friday.

The Sensex shuts shop at 17318.81 up 131.47 points or 0.76% and the Nifty ends at 5248.15 up 39.15 points or 0.75%. The breadthe of the market was encouraging. About 1487 shares advanced, 1261 shares declined, and 671 shares remain unchanged.

The rally was led by gains in software services exporters on hopes of more stimulus from the Federal Reserve after data showed cooling US growth, making valuations in the sector more attractive after recent falls. Infosys rose 2.63%, while TCS ended 4% higher.

Realty stocks ended with decent gains on short covering.