MUMBAI: The Bombay Stock Exchange’s Sensex surged above psychological resistance levels on the back of liquidity driven rally after sentiments turned bullish across the Asian markets. All the major sectoral indices, barring oil&gas space, were in the green with rate sensitives like realty, auto, banks and capital goods space in the lead.

Foreign institutional investors have turned bullish on the Indian markets and continued to pump in dollars in Indian equities. As per provisional data, they bought equities worth 1030.12 crore on Tuesday. The FIIs have invested 9588.68 crore so this month.

Monthly Inflation, back home, slipped to 6.6 per cent in January 2012 as against 7.5 per cent a month ago. According to analysts, the Reserve Bank of India may cut CRR at next meet.

There are also reports that government may go ahead with its economic reforms policy by divesting stakes in ONGC and BHEL.

At 1:00 pm; the Sensex was at 18161.60, up 313.03 points or 1.75 per cent. It touched high of 18181.71 and low of 18000.30 in trade so far.

The National Stock Exchange’s Nifty was at 5512.60, up 96.55 points or 1.78 per cent. The broader index touched intraday high of 5521.90 and low of 5460.60.

“On the Daily chart, we are witnessing a positive candle which has closed above the 5dayEMA and near to the upper band of the range. At present looking at the current price action on the daily chart, any decisive breakout above 5428 levels on good volume could propel the Nifty to test 5480 – 5520 levels.

On the downside, 5380 – 5320 levels may act as support for the day. Stock specific activity likely to continue, but traders are advised to adopt cautious approach at higher levels,” said Arihant Capital Market report.

BSE Midcap Index was up 1.93 per cent and BSE Smallcap Index moved 1.41 per cent higher.

BSE Realty Index was up 3.96 per cent, BSE Auto Index gained 3.81 per cent, BSE Capital Goods Index advanced 3.44 per cent and BSE Bankex moved 2.43 per cent higher. BSE Oil&gas Index slipped 0.09 per cent.

Tata Motors (7.95%), DLF (4.99%), Larsen & Toubro (4.47%), Mahindra & Mahindra (4.11%) and Maruti Suzuki (3.41%) were the major Sensex gainers.

Tata Motors reported 40.5 per cent jump in consolidated net profit to Rs 3,405 crore for the quarter ended December, 2011 on the back of better performance by British division Jaguar Land Rover. The company crossed the Rs 1-trillion revenue target at Rs 1,14,476.6 crore during the quarter under review.