Mumbai: The markets discounted the concerns over inflation rate racing past the six per cent mark, with the benchmark Sensex shooting up by more than 350 points on strong cues from other Asian as well as European bourses.

Snapping the losing streak of the past two days, the 30-share Sensex on the Bombay Stock Exchange added 355.73 points at 16,371.29 at close which is higher by 2.22 per cent from its last close. The index had lost nearly 202 points in the last two days.

Reflecting high volatility, the key index swung between a high of 16,452.08 and low of 15,884.45 points.

Similarly, the 50-issue SP CNX Nifty of the National Stock Exchange also recovered by 111.75 points to 4,942.00.

Asian indices, which turned positive from early losses, ended with an average gains of 0.2 to 5.0 per cent while European markets also exhibited firm trend at opening.

Marketmen said strong signs from global markets had a positive rub off on the Indian bourses which shrugged off the inflation concerns.

According to the latest government data, the inflation rate touched the 13-month high of 6.68 per cent for the week ended March 15.

On BSE, all sectoral indices, except bankex, ended the day up by 1.0 per cent to 5.8 per cent with metal and capital goods segment taking the lead. Bankex slightly ended up 0.3 per cent.

Metal counters attracted heavy buying support. Marketmen said the sector's surge despite government's overnight move to suspend export subsidy under DEPB scheme on steel came as a surprise.

Source : Agencies