Sensex surges 465 points over rate cut hopes
Rupee breaches 71 vs dollar
Benchmark equity indices on Tuesday snapped their three-session fall after cooling retail inflation raised hopes of the Reserve Bank of India (RBI) cutting key policy rates next month.
The 30-share index Sensex soared nearly 465 points helped by intense buying in rate-sensitive stocks and strong global cues supported investors’ sentiment.
Private sector lender Yes Bank emerged as the top gainer with 3.86 per cent climb, followed by Infosys 3.66 per cent, Vedanta 3.03 per cent, Reliance 3.02 per cent and TCS 2.74 per cent, on the Sensex chart.
The index settled 464.77 points, or 1.30 per cent, higher at 36,318.33, while the broader NSE Nifty rallied 149.20 points, or 1.39 per cent, to finish at 10,886.80. Market sentiment remained upbeat over retail inflation dropping to an 18-month low of 2.19 per cent in December, creating headroom for the Reserve Bank to ease monetary policy next month.
Another set of official data showed that the wholesale inflation too eased to an eightmonth low of 3.80 per cent in December.
The market will be range bound and its direction will be upward as there is no scope for downward movement,” said a Mumbai-based analyst.
Investors will take cue from the developments at the UK Parliament where the government’s deal to leave the European Union faced crushing defeat in a historic vote in parliament on Tuesday, leaving the world's fifth biggest economy in limbo. This may mean that the UK will leave the EU without any deal and with the harshest terms possible. On Wednesday, the Nifty 50 is seen moving in a range of 10800-10910 points. Today, the 50-stock index closed with gains of 1.4 per cent at 10886.80 points.
In the Sensex pack, other gainers were Bajaj Finance, Bharti Airtel, Tata Motors, Hero MotoCorp, HUL, Asian MUMBAI: The Indian rupee on Tuesday plunged by another 13 paise to close at one-month low of 71.05 against the US dollar amid strengthening greenback and surging crude oil prices. The rupee breached the crucial 71 to the dollar mark in early trade, its lowest since Dec. 18, 2018, and marginally cut back to trade at 70.99 to the dollar. “There have been chunky outflows for the last two days. We are not sure what kind of outflows these are,” said a foreign bank dealer. “There is no intent visible from the RBI to defend any particular level,” he added on any intervention noticed by the central bank through state banks to stem the sharp fall in the rupee.
Paints, HDFC duo and ONGC -- gaining as much as 2.87 per cent.
On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 732.46 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 527.49 crore.