Sensex registers biggest gain in 7 months, surges 387 points
It finally ended the day at 18,744.93, showing a significant rise of 387.13 points, or 2.11 per cent, its biggest gain since September 2012.
Mumbai: The BSE benchmark Sensex on Tuesday surged 387 points, its biggest gain in seven months, to end at 18,744.93 led by banking, auto, power and realty scrips on hopes of aggressive rate cut by RBI and likely relief on CAD front due to falling gold and oil prices. Rising for the second day, the 30-share Sensex rose to the day's high of 18,771.33.
It finally ended the day at 18,744.93, showing a significant rise of 387.13 points, or 2.11 per cent, its biggest gain since September 2012. The gauge rose over 171 points in the early trade.
The NSE 50-share Nifty spurted by 120.55 points, or 2.16 per cent to close at 5,688.95. Brokers said increased buying by funds and retailers on hopes of a rate cut by the RBI at its policy review on May 3.
"Market is seen discounting the fall in gold and crude oil prices which is likely to bring down current account deficit (CAD). Also, a lower-than-expected inflation rate released also raises hopes for RBI to cut key interest rates," said Nidhi Saraswat-Senior Research Analyst, Bonanza Portfolio.
In the 30-BSE index component, 27 stocks advanced while 3 closed with losses. The banking sector index emerged best performer by gaining 2.94 per cent to 13,588.60 points with all the 14-components, led by State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Federal Bank and Yes Bank ending in positive zone with gains up 5.58 per cent.
The auto sector index by 2.54 per cent to 10,072.93 points as Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hero Motocorp and Bajaj Auto registered smart gains. The stock in oil and gas sector extended Monday's gains with BPCL rising 2.72 per cent, HPCL by 0.93 per cent, ONGC by 3.87 per cent and IOC by 0.43 per cent.
RIL stocks rose by 1.38 per cent ahead of its fourth quarter earnings. Shares of Tata Power ended 2.02 per cent higher after electricity regulator CERC allowed the company to raise power tariffs to compensate for an unexpected increase in coal cost.
However, stocks of gold finance companies remained under pressure on rising risk of default due to persistent fall in the precious metal prices. Mannappuram Finance fell 9.77 per cent and Muthoot Finance by 9.44 per cent. Globally, Asian stocks ended mixed, European markets were trading lower in early trade on Tuesday.