Sensex regains 24,000-mark; soars 431 points on rate cut buzz

The benchmark Sensex continued its post-Budget rally for the second straight day by zooming over 431 points to get past the 24,000-mark on Wednesday in anticipation of policy easing by RBI amid positive global markets.

Last Updated: Mar 02, 2016, 10:22 AM IST
Sensex regains 24,000-mark; soars 431 points on rate cut buzz

Mumbai: The benchmark Sensex continued its post-Budget rally for the second straight day by zooming over 431 points to get past the 24,000-mark on Wednesday in anticipation of policy easing by RBI amid positive global markets.

 

The talk of a rate cut by the Reserve Bank gained momentum following the government's commitment to the fiscal deficit road map as displayed in the Budget while the rupee rose against the dollar, which supported the upbeat mood.

Finance Minister Arun Jaitley maintained the fiscal deficit target for 2016-17 at 3.5 percent of GDP.

 

The 30-share index, which had posted its biggest single-day rally of 777.35 points in almost 7 years in yesterday's session, added 431.27 points or 1.81 percent to 24,210.62, with all sectoral indices led by banking, PSU, and realty notching up gains.

The NSE Nifty 50 index reclaimed the 7,300-level by climbing 129.10 points, or 1.78 percent, at 7,351.40.

Brokers said a pick-up in buying momentum, tracking a firming trend in the rest of Asia, following the overnight rally in the US on improved economic data, helped both key indices regain their crucial levels.

In addition, a fresh spell of buying by foreign investors after remaining major sellers buoyed mood.

 

Hong Kong's Hang Seng was trading higher by 2.68 percent while Nikkei surged 4.04 percent in early trade. Shanghai Composite was quoting 2.25 percent higher.

The US Dow Jones Industrial Average ended 2.11 percent higher in yesterday's trade.