Sensex on a roll, crosses 13500

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Banking, power and telecom sectors have posted gains during the rally, even as investment patterns turned towards individual stocks as against a sector-specific approach adopted earlier.

Earlier in the day, the index was up nearly 120 points as banking majors were in the limelight on the second consecutive day.

Incidentally, the BSE Bankex was the best performer of the day with a gain of more than 2.10 percent. Banking majors like SBI, ICICI Bank and HDFC Bank were among the top gainers of the day.

Meanwhile, the broader S&P CNX Nifty of the National Stock Exchange (NSE) ended the day almost unchanged at 3,876.85.

Analysts were of the view that the banking stocks are being aided by more than one factor. "The US inflation rate is coming down and the Bank of Japan also decided against further hiking of the interest rate. These factors along with a fall in the 10-year bond yield has made investors quite bullish on the sector," said a research analyst.

"Liquidity is driving the rally. Until we see some seriously negative development or news, the Sensex is likely to sustain its momentum. Though there are no negatives expected on the domestic front, there are some in the global scenario, like crude prices," said Nischal Maheshwari, senior vice-president at Edelweiss Securities.

Lalit Thakkar, chief investment officer of Angel Broking, was more categorical.

"FII inflows are expected to rise in December with new allocations pegged at higher levels. Retail investors who have shied away from the market are also back after making up their losses," he said.

"Even the negatives have subsided with interest rates softening in the government securities market, and global oil prices remain subdued," he said.

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