Mumbai: After consolidating for second straight day, late surge drove market on higher levels. The Sensex was up 363.30 points or 1.3 per cent at 27687.30 while the Nifty ended up 111.30 points or 1 per cent at 8373.65.
Prospect of a rat cut boosted sentiment today on Dalal Street as ahead of RBI's second bi-monthly monetary policy review Finance Minister Arun Jaitley said he expects rate cut by the central bank.
The RBI has lowered its policy rate twice so far in 2015, but maintained a status quo in its first bi-monthly monetary policy released on April 7 on fears of unseasonal rains impacting food prices.
The repo rate, at which the RBI lends to the banking system, currently stands at 7.5 per cent and the cash reserve ratio, which is the amount of deposits parked with the central bank, is 4 per cent.
Meanwhile, Manishi Raychaudhuri, Asia Pacific Strategist, BNP Paribas says the recent correction in Indian equities was expected, but its depth and duration were surprising, Raychaudhuri says rising crude prices and the relative attractiveness of other Asian markets are among the reasons for the correction.
However, he feels the uptrend in the last few days indicates that FIIs are interested once again. On the commodities front, oil prices edged up following fighting in Iraq and Yemen, but Iranian comments that OPEC was unlikely to cut output as well as signs of strengthening US production capped gains.
Prices were supported by concerns that conflict in Iraq and Yemen could disrupt supplies after Islamic State militants said they had taken control of the Iraqi city of Ramadi in a big blow to the government.
Buzzing stocks
About 1668 shares advanced, 1052 shares declined, and 173 shares were unchanged.Oil stocks led the rally riding high on petrol and diesel price hike over the weekend.
Stocks like HPCL, BPCL and IOC jumped 3-4 per cent on Monday. Oil and Gas index closed 2 per cent higher from previous close. Dr Reddy's Labs ended up 4 per cent while Tata Power, GAIL, HDFC and Bajaj Auto were top gainers in the Sensex.
Among the losers were NTPC, Coal India, Hero Motocorp, Tata Steel and Tata Motors. Asian Paints closed 3 per cent lower after its March quarter results were below estimates.
The stock had rallied in early trade hoping for volume growth which came in at 3-5 per cent in the quarter. Among the midcap gainers were Jain Irrigation, CCL Internation, Century Plyboard, Apollo Tyres and Ceat.
Comments
0 comment