Sensex gains 133 pts on rate cut hopes, firm Asian cues

Despite lower industrial growth, the BSE benchmark Sensex today gained 133 points on revival of buying by funds in bluechips amid a firm global trend.

Sensex, which had lost 44.44 points yesterday, bounced back to close 133.22 points higher or 0.77 per cent to 17,332.62.

Similarly, NSE 50-scrip index Nifty rose 50 points, or 0.96 per cent, to 5,276.85.

Brokers said lower industrial growth led to investor hopes that it may prompt the Reserve Bank to cut lending rates at its annual monetary policy meeting next week.

The industrial production grew at a slower-than-expected 4.1 per cent in February against 6.7 per cent in the same month last year, weighed down by a contraction in consumer durables and consumer goods.

SBI, the biggest state-run lender, gained 2.95 per cent to Rs 2,224.10, ICICI Bank by 1.53 per cent to Rs 878.15 and HDFC Bank by 0.79 per cent to Rs 530.40.

The most heaviest on the Sensex, Reliance Industries spurted by 1.36.

In the 30 Sensex stocks, 23 made gains. Barring IT and Teck, all sectoral indices were higher.

The metal sector index gained the most - up 2.20 per cent at 10,956.13 amid reports of a firm trend in base-metals on the London Metal Exchange.

The banking index was second best performer by adding 1.62 per cent to 11,979.99.