Sensex gains 120 pts on hopes of rate cut in Jan

The BSE benchmark Sensex closed over 120 points higher with rate sensitive banking and realty stocks attracting good buying on optimism of RBI easing monetary policy next month even as the central bank kept the interest rate unchanged in policy review today.

The 30-share index jumped after RBI announced its mid quarter policy review and ended with a gain of 120.33 points, or 0.63 per cent, at 19,364.75. The broad-based National Stock Exchange index Nifty rose by 38.90 points, or 0.66 per cent, to 5,896.80, led by stocks of banking, realty shares.

RBI kept the key interest rates unchanged, but hinted at easing of rates in January saying with decline in inflation, the focus of monetary policy would shift to removing impediments to growth.

Brokers added that a firming global trend further fuelled the uptrend. In 30-BSE index components, 23 stocks gained, while six closed with losses. Tata Power remained unchanged.

Major gainers were State Bank of India, ICICI Bank, Bharti Airtel, BHEL, Hindalco, Infosys, Larsen and Toubro, Jindal Steel, Tata Steel and Sun Pharma.

The realty sector index gained the most by 2.38 per cent to 2,120.67, followed by metal index by 1.78 per cent to 10,946.67. Banking index rose by 0.34 per cent to 14,322.15.