BSE Sensex rebounds 242 pts ahead of RBI policy meet; global cues aid

Aug 04 2014, 16:52 IST
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BSE Sensex closed higher on Monday, snapping two days of falls. Reuters BSE Sensex closed higher on Monday, snapping two days of falls. Reuters
SummaryBSE Sensex had lost 606.58 points in the previous two sessions.

Snapping a two-session losing trend, Indian stock markets today ended on a positive note with the BSE Sensex rebounding about 242 points to 25,723.16 on buying in banking, consumer durables and auto stocks ahead of the RBI monetary policy review.

IT stocks also supported gains in view of a weak rupee. Global cues also helped as China was buoyed by recent data indicating recovery and reported intervention by Portugal's central bank to rescue crisis-hit Banco Espirito Santo, boosted confidence. Live updates: Indian rupee vs US dollar, others

The 30-share barometer, which had lost 606.58 points in the previous two sessions, commenced on a strong footing to touch the day's high of 25,754.42. It settled with a gain of 242.32 points, or 0.95 per cent, at 25,723.16. Intra-day, it had fallen to a low of 25,531.38 but recovered smartly.

The 50-share NSE Nifty rose by 81.05 points, or 1.07 per cent, to close the session at 7,683.65 after shuttling between 7,694.80 and 7,622.05 intra-day. It had slipped 189 points in past two days.

Expectations that the Reserve Bank of India (RBI) in its monetary policy review tomorrow will give some relief supported the bullish market sentiment, brokers said. However, consensus is of the view that RBI will not cut rates tomorrow.

Interest-sensitive stocks such as SBI, ICICI Bank, and Axis Bank gained about one per cent ahead of RBI meet outcome.

Shares of Infosys zoomed 3.66 per cent to end the day as the best Sensex gainer. Hindalco spurted 3.12 per cent, Sesa Sterlite 2.44 per cent, Wipro 2.42 per cent, Maruti Suzuki 2.40 per cent and Bajaj Auto 1.72 per cent. Overall, 25 constituents of the 30-scrip Sensex rose.

The weakness in the rupee, which is trading at over 3-month low at 61.08 (intra-day) against the dollar, helped IT stocks, which get a large chunk of sales in dollars.

Meanwhile, overseas investors pumped in USD 6 billion into the Indian securities market in July -- taking overall net inflows since beginning of 2014 to over USD 26 billion.

Sectorwise today, the BSE Consumer Durables index gained the most by rising 3.20 per cent, followed by IT index (2.08 per cent), Power index (1.73 per cent), Teck index (1.73 per cent) and Banking index (0.70 per cent).

HIGHLIGHTS

* NSE index gains 1.07 pct; BSE index adds 0.95 pct

* Rate-sensitive stocks advance

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