Sensex rebounds by 180 points to two-year high on rate cut hopes
Mumbai: The BSE benchmark Sensex on Friday bounced back by jumping nearly 180 points to close at two-year high level of 20,103.53 on heavy buying in interest-sensitive stocks ahead of RBI credit policy next week and better than expected earnings by Maruti Suzuki.
After falling by 103 points yesterday, Sensex today rose by 179.75 points, or 0.90 percent to end at 20,103.53 helped by Tata Motors, Maruti, SBI, L&T and HDFC Bank shares.
Indications of recovery in the global economy, mainly in the US, China and Europe, also helped sentiment, dealers said.
Rate-sensitive real estate, auto, consumer durables, capital goods and banks saw good buying on hopes at least 0.25 percent cut in rates on January 29 to boost economic growth.
Buying was strong with all 13 sectoral indices closing with gains of up to 4.42 percent.
Similarly, the 50-share NSE index Nifty rose by 55.30 points, or 0.92 percent to close at 6,074.65.
"Constant liquidity in the market is holding the indices in upward zone, i.E., Nifty above 6,000 and Sensex over 20,000. Also, rate cut hopes are high this time," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
Maruti Suzuki rose by 4.15 percent, the best performer among 30-scrip Sensex today, as it reported over two-fold surge in Q3 net profit at Rs 501.29 crore.
"Maruti's profit jumped by 144 percent YoY ahead of consensus on account of higher EBITDA and other income," said Daljeet S Kohli, Head Research, IndiaNivesh Securities.
Tata Motors, the owner of Jaguar Land Rover, also shot up by 2.55 percent to Rs 301.05 on value buying by investors.
Among banks, State Bank of India shot up by 2.23 percent to Rs 2,513.25, ICICI Bank by 0.76 percent to Rs 1,172.75, Bank of Baroda by 4.71 percent to Rs 880.70 and Bank of India by 4.70 percent to Rs 364.40.
In realty space, DLF, Unitech India Bulls Realestate and Sobha Developers closed with gains on expectations that a rate cut would boost home loan business.