- Inflation declines to 5-month low at 6.16 pc, RBI may ease interest rates to prop up growthSensex up 167 points on firm global cues, Coal India shares gainNSE Nifty breaches 6,300 on inflation; profit-taking caps riseHCL Technologies' Q2 earnings per share may beat estimates: StarMine
All-round buying after wholesale inflation declined to a five-month low lifted the benchmark BSE Sensex today by nearly 257 points to its highest level since December 9 on hopes the RBI will lower interest rate to boost economic growth.
The NSE barometer Nifty also jumped over 79 points to reclaim the 6,300-point mark as it ended at 6,320.90.
Supported by gains in rate-sensitive banking, realty and auto sector stocks, the 30-share BSE Sensex rallied by a whopping 256.61 points, or 1.22 per cent, to end at 21,289.49, its highest closing since 21,326.42 on December 9.
Overall, 29 out of 30 Sensex-based scrips closed higher. HDFC Ltd and Larsen & Toubro (L&T) led the gainers, while Tata Steel closed flat. Other prominent gainers included Tata Motors, Hero MotoCorp, Bharat Heavy Electricals Ltd (BHEL), Sesa Sterlite and Cipla Ltd.
Yesterday, Sensex had lost 101.33 points on profit-taking.
Brokers said along with the rising trend in other Asian and the European markets after the World Bank raised its global growth forecast, wholesale inflation declining to a five-month low of 6.16 per cent in December, raised hopes that the Reserve Bank will ease interest rates and prop up growth.
However, profit-booking by some traders at higher levels, trimmed gains in some stocks, they added.
Shares of state-owned Coal India ended 1.81 per cent higher after the company declared an interim dividend of Rs 29 per share, or a record 290 per cent, for 2013-14. It had soared over 6 per cent in early trade.
Out of 13 sectoral indices, 10 barometers closed with gains between 0.37 per cent and 1.98 per cent.
The BSE Capital goods sector index rose 1.98 per cent, Banking index by 1.59 per cent, Realty index by 1.31 per cent and Auto index by 1.22 per cent.
Shares of Yes Bank ended 1.95 per cent higher after bank reported 21.4 per cent rise in net profit at Rs 415.6 crore for its third quarter ended December 2013. PTI SUN KPS DP KSR 01151625
Dipen Shah, Head- Private Client Group Research, Kotak Securities
Stock markets ended the day with more than 1% gains. The WPI data came in much lower than estimates and this supported the banking stocks, which ended sharply higher.
With the economic data