Friday, July 7 2006 10:50 Hrs (IST) - World Time -

Mumbai: Discounting all negative factors, the stock markets today (July 7, 2006) made a strong positive turnaround with Bombay Stock Exchange benchmark Sensex surging by 120 points to 10,887.67 points during morning trading on fairly good buying support on the back of heavy FII inflows.

A sharp rally in metal prices on London Metal Exchange (LME) yesterday and firm trend in Asian markets this morning also had a sentimental impact on the market.

The markets turned bullish largely on heavy net purchases by Foreign Institutional Investors (FIIs) during the last couple of trading sessions, market players said.

The 30-share sensitive index (Sensex) opened firm at 10,813.75 points and jumped to 10,887.67 points within minutes of trading.

The Sensex, however, was quoted at 10,865.85 points at 10.20 am from previous close of 10,767.97.

The National Stock Exchange's (NSE) S&P CNX Nifty also rallied smartly by 30.70 points to 3,187.10 points from previous close of 3,156.40 points.

The markets seemed to have discounted the Prime Minister Manmohan Singh's decision to put off all disinvestments of public sector units, dealing a blow to the economic reforms programme of the UPA Government.