Sensex snaps five-day fall, soars 220 points
Mumbai: Snapping five-session losing streak, the benchmark BSE Sensex on Tuesday surged by 221 points with rate sensitive stocks attracting buying support in the aftermath of retail inflation easing to 30-month low of 7.31 percent.
Brokers said softening of inflation has sparked off hope that the Reserve Bank will cut interest rate at its policy review next month.
While retail inflation in June touched its lowest mark at 7.31 percent since January 2012, the wholesale price based index slid to four-month low of 5.43 percent mainly because of easing prices of vegetables.
Value-based buying in many blue-chip stocks, which became attractive after recent losses, also helped the the barometer to close higher, brokers said.
The 30-share Sensex gained 221.67 points, or 0.89 percent, to end the day at 25,228.65.
The surge comes for index comes after losing 1,093 points in the previous five sessions.
The broad-based National Stock Exchange index Nifty reclaimed the 7,500-mark by jumping 72.50 points, or 0.97 percent, at 7,526.65.
Firm Asian markets, mixed European opening and record closing on US markets yesterday on better-than-expected earnings by Citigroup also helped boost investor sentiment in domestic market.
Major gainers were BHEL at 4.31 percent, SBI 4.43 percent, L&T 2.21 percent, Mahindra and Mahindra 2.59 percent, Axis Bank 2.89 percent, Coal India 1.52 percent, GAIL 1.28 percent, ONGC 2.49 percent, RIL 1.20 percent, ICICI Bank 3.33 percent, Tata Steel 2.92 percent and Tata Motors 1.37 percent.
Consumer durables index outshined other sectors. The BSE consumer durables sector index gained the most by rising 2.84 percent, followed by banking sector index (up 2.64 percent, PSU index (2.42 percent), capital goods index (2.30 percent), realty index (2.37 percent), metal index (1.33 percent) and oil and gas index (1.64 percent).
FMCG and IT sector index, however, ended in the negative territory.
The mid cap index also turned active with buying seen in several of its constituents. Midcap index up 2.06 percent and smallcap up 2.279 percent.