Sensex gains 265 points on rate cut hopes; regains 19K level
Mumbai: The BSE benchmark Sensex on Tuesday regained 19,000 level by surging the most in three months led by buying on hopes of more measures to boost economic growth and interest rate cut amid a rally in global markets.
The Sensex spurted by 265.21 points, or 1.40 percent to close at 19,143.17, recording its biggest single day gain since November 29.
Similarly, the broad-based National Stock Exchange index Nifty shot up by 85.75 points, or 1.50 percent, to 5,784.25 led by stocks of Reliance Industries, Infosys and State Bank of India.
Brokers said the market remained bullish after Finance Minister P Chidambaram said that the government will soon announce more measures to boost economic growth.
Banking and interest-sensitive stocks were on the fore-front on expectations of interest rate cut by the Reserve Bank of India in its policy review this month, they said.
“Rate-sensitive sectors like Banking and Realty rebounded from lower levels on expectations of probable rate cut by RBI this month, ” said Rakesh Goyal, Sr Vice President, Bonanza Portfolio Ltd.
Trading sentiment further bolstered as Asian stocks surge and European stocks rose to over four-year high amid speculation that central banks around the world will continue with measures to support economic recovery.
In 30-BSE index components, 25 stocks advanced while five closed lower. The realty sector index gained the most by 3.13 percent 1,947.03 followed by metal index by 2.65 percent to 9,128.59. Banking index rose by 1.89 percent to 13,528.53 and auto index by 1.78 percent to 10,720.39.
The market heavy Reliance Industries shot up by 1.69 percent to Rs 826.30 after Morgan Stanley upgraded its rating on the stock.
The second heavy Infosys rose by 0.62 percent to Rs 2.920.95, while ICICI Bank spurted by 3.36 percent to Rs 1,093.80. The three stocks carry nearly 20 percent weightage on the Sensex.