Rising for the fourth straight day, the BSE benchmark Sensex today gained around 169 points as the tepid second quarter GDP growth number fuelled hopes of RBI cutting interest rates sooner than expected.
Mumbai: Rising for the fourth straight day, the BSE benchmark Sensex today gained around 169 points as the tepid second quarter GDP growth number fuelled hopes of RBI cutting interest rates sooner than expected.
The Sensex, which had regained 19,000 mark level by surging 665 points in last three sessions, spurted further by 168.99 points, or 0.88 percent to 19,339.90, a level last seen in April, last year.
Brokers said the market remained in cheerful mode despite July-September quarter GDP coming at 5.3 percent year-on-year as investors bought shares in metal, power, PSUs, banks and consumer durables stocks on hopes of a rate cut in its policy review on December 18 to boost economic expansion.
Financial stocks were in limelight as State Bank of India surged by 1.78 percent, ICICI Bank by 1.56 percent, HDFC Bank by 0.70 percent and HDFC Ltd by 2.49 percent.
In the metal sector, Sterlite Industries surged 3.24 percent, extending gains in this week's rally to 13 percent, while aluminium maker Hindalco Industries advanced by 2.65 percent. Tata Steel also spurted by 2.24 percent.
"Another tepid GDP report underlines the marked deterioration in India's macro-fundamentals in recent years...RBI...May cut interest rates as early as its January policy review. Given tight liquidity, an earlier CRR cut at its December policy review looks likely too," said Richard Iley, Chief Asia Economist, BNP Paribas.
Analysts said the Sensex gained nearly 4.4 percent this month on heavy inflow of foreign funds on hopes that the government will push through economic reforms.
The 50-share National Stock Exchange index Nifty rose by 54,85 points, or 0.94 percent to 5,879.85.
The undertone of the market remained bullish after Moody's and Goldman Sachs came out positive reports recently.
A firming trend in the global markets after data showed the US economy grew more than first expected in the third quarter amid hopes of a deal on averting the fiscal cliff, also supported the uptrend to some extent.