The Bombay Stock Exchange benchmark Sensex today rose by 107 points to a fresh

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eight-week high on buying by domestic and overseas funds, which took cues from firm global markets.

The 30-share index gained 106.90 points to close at 17,490.08 points. The key index managed to hold the highest level matching with that on January 20.

Brokers said a firming trend in the Asian region and a higher opening in Europe fuelled the market sentiment.

In 30-BSE index stocks, 22 closed with gains while other eight closed with losses.

PSU sector index gained 2.04 per cent to 9,126.18 followed by healthcare index by 1.66 per cent to 5,170.66. Metal index rose by 1.18 per cent to 17,751.82 and capital goods index by 0.94 per cent to 13,994.39.

The wide-based National Stock Exchange index Nifty rose by 33.80 points to 5,231.90.

Asian markets were boosted by the US Federal Reserve's announcement that it would hold key rates at near zero level for some time to stimulate fragile US economic recovery.

Hong Kong closed higher by 1.72 per cent, Shanghai by 1.93 per cent, while Singapore by 0.79 per cent. Tokyo closed up 1.17 per cent after the Japanese central bank doubled to USD 220 billion the short-term loan facility to banks.

Markets 10.44 AM (PTI)

The BSE Sensex rose more than 1 percent to near two-month highs on Wednesday morning, led by gains in energy major Reliance Industries and financials, with world equities rising after the United States kept monetary policy unchanged.

Reliance Industries extended gains and climbed 0.8 percent to 1,075.45 rupees after a source told Reuters the company is seeking a joint venture with Atlas Energy to develop the U.S. firm's Marcellus Shale gas operations.

"It looks like they are out to buy an asset at the right price," said Gaurav Dua, head of research at Sharekhan said.

"If things don't work out, they are moving on to other opportunities," he added.

By 10:44 a.m. (0514 GMT), the 30-share BSE Index was trading up 1.04 percent at 17,563.23, with 29 of its components gaining.

It rose as much as 17576.78 earlier, its highest level since Jan. 20.

"The market may see upside from current levels after the consolidation we saw, as advance tax figures for March quarter were promising," said Jigar Shah, vice-president of equity sales at Motilal Oswal.

"Also, global cues are good," added Shah.

Foreign funds have pumped in more than $2.5 billion in Indian equities since the start of this month to March 12, leading to a nearly 7 percent rise in the benchmark index.

Financials rose, supported by a broad market rally, and on improving long-term prospects in the growing economy.

Top lender State Bank of India rose 1 percent while private lenders ICICI Bank and HDFC Bank gained 1.5 percent and 0.1 percent respectively.

Mortgage lender Housing Development Finance Corp rose 0.9 percent.

Non-ferrous metals producer Sterlite Industries climbed 1.3 percent as a softer dollar pushed copper prices higher.

Tata Steel, world's eighth-largest steel maker by output, climbed 1.9 percent while aluminium maker Hindalco rose 2.1 percent.

In the broader market, gainers more than doubled the number

of losers in a volume of 129 million shares.

The 50-share NSE index was up 1.1 percent at 5,252.75.

STOCKS ON THE MOVE

* National Aluminium Co Ltd rose 1.1 percent to 401.65 rupees after a company source said the state-run company has increased prices of aluminium products for the domestic market by 2,000 rupees ($43.9) per tonne.

* Explorer Cairn India, a unit of U.K.'s Cairn Energy, gained 1.3 percent to 284.35 rupees, as crude oil prices rose above $82 per barrel.

MAIN TOP 3 BY VOLUME

* MSK Projects on 5.1 million shares

* Shree Ashtavinayak on 2.3 million shares

* Reliance Natural Resources on 1.7 million shares

Markets 09.00 AM (PTI)

The Bombay Stock Exchange benchmark Sensex shot up by over 118 points, 0.68 per cent, to cross 17,500 points for the first time since January 20 in opening trade today on a flurry of buying by funds driven by rallies in global markets.

The 30-share index, which had gained 218.19 points in the previous volatile session, gained another 118.48 points to reach 17,501.66 points, the highest level since January 20, with all the sectoral indices trading in the positive.

The wide-based National Stock Exchange index Nifty rose 35.50

points, or 0.68 per cent, to 5,233.60 points.

Brokers said trading sentiments were mainly buoyed by a strong rally on Asian bourses in tandem with overnight gains in the US markets after the Federal Reserve kept benchmark rates near zero.

They said better quarterly corporate advance tax numbers was another positive factor.

Reliance Industries continued to remain investors' fancy on favourable corporate reports and gathered another 0.81 per cent at Rs 1,075.40.

Among other prominent gainers Infosys Technologies was up 0.13 per cent to Rs 2,735.90, Tata Consultancy Services by 1.38 per cent to Rs 837.60, Wipro by 1.19 per cent to Rs 736.50, Sterlite Industries by 0.83 per cent to Rs 838 and State Bank of India by 0.46 per cent to Rs 2,025.40.

The Hong Kong's Hang Seng index was up 0.69 per cent, while Japan's Nikkei by 0.59 per cent. The US Dow Jones Industrial Average ended 0.41 per cent higher in the previous session.