Sensex hits one-month high on strong global cues

Aided by positive global cues, a benchmark index of Indian equities markets made gains for the second straight day Thursday, closing at a one-month high of 16,649.05 points.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,578.01 points closed at 16,649.05 points, up 1.18 percent or 194.75 points from its previous close of 16,454.30 points.

The Sensex touched a high of 16,680.59 points and a low of 16,519.89 in intra-day trade. The BSE midcap index rose 42.93 points while the smallcap index rose 29.01 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange closed 1.05 percent higher at 5049.65 points.

Interest rate sensitive banking, real estate, and auto stocks surged for the second day after RBI said that there was room for rate cuts.

Early this week, RBI deputy governor Subir Gokarn hinted at rate cuts, saying decline in crude oil prices in the international markets and moderating core inflation coupled with slowdown in economic growth would give some room for easing monetary policy.

The RBI is scheduled to announce first quarter review of the monetary policy on June 18.
The BSE realty index rose 2.19 percent, banking index rose 2.11 percent while automobile index rose 1.32 percent.

Major Sensex gainers were Sterlite Inds, up 3.85 percent at Rs.97.20; HDFC Bank, up 3.75 percent at Rs.538.80; ICICI Bank, up 3.67 percent at Rs.836.75; DLF, up 3.11 percent at Rs.194; Maruti Suzuki, up 3.03 percent at Rs.1,142.30; and Hero MotoCorp, up 2.38 percent at Rs.1,992.10.

The only five Sensex losers were Wipro, down 1.91 percent at Rs.400.70; TCS, down 1.02 percent at Rs.1,240.45; Gail India, down 1 percent at Rs.322.35; Hindalco Inds, down 0.62 percent at Rs.119.75; and Cipla, down 0.13 percent at Rs.308.55.

The markets had opened with a 100-point gain on strong Asian cues. The benchmark index consolidated the gains after the European market opened strong.