The Hindu Business Line
Indices rise further on rate cut hopes
Rising for the fourth session in a row, the BSE benchmark Sensex on Tuesday added another 185 points to hit an alltime closing high of 39,056 and the NSE Nifty closed above the key 11,700-level on intense buying, mainly in auto, IT and banking stocks amid hopes of the RBI cutting the repo rate.
Tata Motors drove the Sensex rally for the second session in a row, surging over 8 per cent. Other top gainers were Bharti Airtel, TCS, Bajaj Finance, PowerGrid, IndusInd Bank and SBI — rising as much as 5 per cent. Auto, banking and IT stocks contributed significantly to the surge in the Sensex on Tuesday. The stock of Tata Motors vroomed 8.36%
Bucking the overall trend, Bajaj Auto, Sun Pharma, Vedanta, Tata Steel, HCL Tech and HDFC Bank saw intense selling on account of profit-booking.
The 30-share Sensex started on a positive note at 38,988.57 and swung between a high of 39,121.69 and a low of
38,846.96. During the course of the day, it also set its new intra-day record touching 39,121.69. The gauge finally settled for the day at 39,056.65, up 184.78 points, or 0.48 per cent. Similarly, the NSE Nifty opened higher at 11,711.55 and rose to a record intraday high of 11,729.35. It, however, closed at 11,713.20, up 44.05 points or 0.38 per cent.
Sectorally, realty, telecom, auto and IT emerged as prominent gainers. On the other hand, indices of oil and gas, FMCG and basic materials were in the red. The RBI’s ratesetting panel on Tuesday started its three-day deliberations for the first bi-monthly monetary policy of 2019-20 amid expectations of a cut in the key lending rate by another 25 basis points to boost economic activity.
Investors are keenly awaiting the outcome of the RBI’s first bi-monthly monetary policy review meeting. Experts believe that hopes of an interest rate cut by the RBI have also aided the recent rally in domestic equities.