Sensex snaps 3-day losing streak; up 353 pts on low inflation

Sensex snaps 3-day losing streak; up 353 pts on low inflation

Sensex snaps 3-day losing streak; up 353 pts on low inflation

Rising for the first time in four days, the BSE benchmark Sensex today gained a massive 350.77 points to close above the 19,000 level on all-round buying by funds as lower headline inflation revived hopes of a rate cut by RBI next week, amid smart recovery in global markets.

The 30-share index started the day strong at 19,022.68 and increased further to settle 350.77 points, or 1.86 per cent, higher at 19,177.93. Sensex had slipped below the 19,000-level to 18,827.16 yesterday, losing 613.91 points, or 3.16 per cent in last three sessions.

Similarly, broad-based National Stock Exchange Nifty rose by 109.30 points, or 1.92 per cent, to close at 5,808.40.

Also, MCX-SX flagship index, SX40, ended 207.09 points higher, or 1.85 per cent, at 11,386.45.

Brokers said the WPI-based inflation falling to a 43-month low at 4.7 per cent in May raised hopes of a rate cut by the Reserve Bank in its mid-quarter monetary policy review on Monday, June 17. Also, rupee stabilising above the 57 level in intra-day today pushed up local stocks.

Buying activity gathered momentum after Finance Minister P Chidambaram said more reform measures are on the anvil to boost economic growth.

Also, overall gains in all the major global markets, including Nikkei, Hang Seng, Euro STOXX, as investors speculated central banks will not immediately scale back stimulus measures, also boosted the trading sentiment here.

Out of the 30 Sensex stocks, 26 ended higher led by Hindalco, Tata Motors and Maruti.
The market heavy Reliance Industries surged by 3.15 per cent to Rs 814, and second most heavy Infosys by 0.88 per cent to Rs 2,400. The most heavy ITC shot up by 1.41 per cent to Rs 331.40. The three stocks carry nearly 25 per cent weightage on the Sensex.

Sectorally, the consumer durable sector index gained the most, rising 3.52 per cent to 6,592.76 followed by auto sector by 3.01 per cent to 10,697.47. Realty index rose by 2.86 per cent to 1,602.17 and metal index by 2.50 per cent to 7,940.23.