BSE Sensex up 490 pts,NSE Nifty 151 pts as RBI rate cut hopes rise

Investor wealth,as measured by market capitalisation,surged by a staggering Rs 1.30 lakh crore as three stocks rose for fall of every two. This more than recovers Rs 1 lakh crore that was wiped off on across-the-board selling on Monday.

* BSE Sensex

* NSE Nifty

* Top Gainers/Top Losers

* Top Value

The Bombay Stock Exchange 30-share barometer today resumed higher and gradually rose to settle at 20,212.96,a rise of 490.67 points or 2.49 per cent. Previously,it had concluded at 20,301.10 on January 5,2011. Today’s gain is the highest in percentage terms since June 2012.

NSE Nifty index jumped by 151.35 points or 2.52 per cent to end at 6,146.75. Similarly,MCX-SX flagship index SX40 closed 245.6 points,or 2.10 per cent,higher at 11,925.14.

“We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17,” RBI Governor D

Subbarao said in Frankfurt. He said,he was happy to see that inflation has come down to below 5 per cent.

Today’s stock market rally has been partly fuelled by

“heightened expectations” of further easing by the central bank going forward,said Sanjeev Zarbade,Vice President PCG Research,Kotak Securities.

Mortgage major HDFC,state-run SBI and private lender ICICI Bank were the star performers of the day with gains of 3.8-4.7 per cent. Smart rise in RIL,ITC,L&T,Tata Motors,M&M and ONGC helped the trio together contribute over 400 points to the Sensex surge.

Besides interest-rate related stocks,PSU,refinery,pharma,metal and consumer durables also attracted buying.

Rate-sensitive S&P BSE-Realty was the biggest gainer among sectoral indices at 4.04 per cent,followed by BSE Bankex (3.95 pc),BSE-CG (3.00 pc) and BSE-PSU (2.36 pc).

Higher advices from international markets,coupled with sustained capital inflows from foreign funds,also boosted the market sentiment. Foreign Institutional Investors (FIIs) bought shares worth Rs 1,646.95 crore as per provisional data from the stock exchanges.

Asian shares closed higher with Japan’s Nikkei Average surging to a fresh five-and-half year high as Japanese exporters rallied on the yen’s sharp slide. Key benchmark

indices in China,Hong Kong,Japan,Singapore,South Korea and Taiwan rose by 0.12 per cent to 2.29 per cent.

However,European markets were trading narrowly mixed after reports said GDP data of Germany just narrowly avoided contraction in the first quarter and France slipped into recession. The CAC was quoting up by 0.08 per cent while the DAX was down by 0.10 per cent and the FTSE by 0.22 pct.

US stocks rallied to record highs yesterday continuing an ascent driven by the Federal Reserve’s easy monetary policy.

Moving back to the local market,29 scrips out of the 30-share Sensex pack ended higher while Wipro ended down.

Major gainers from the Sensex pack were HDFC (4.70 pc),SBI (4.07 pc),L&T (3.85 pc),ICICI Bank (3.8 pc),HDFC Bank (2.72 pc),M&M (3.6 pc),Cipla (3.25 pc),Hindalco (2.7 pc),Reliance Industries (2.65 pc),ONGC (2.63 pc),Tata Motors (2.63 pc) and Jindal Steel (2.49 pc).

NTPC (2.15 pc),Bajaj Auto (2.14 pc),Maruti Suzuki (2.07 pc),ITC (2.01 pc),Dr Reddy’s Lab (1.92 pc),Hero MotoCorp (1.89 pc),Coal India (1.80 pc),Bharti Airtel (1.64 pc),Sterlite Industries (1.58 pc),Tata Steel (1.53 pc) and BHEL (1.30 pc) also notched up smart gains.

“Lower inflation numbers coupled with ample liquidity flow from FIIs is helping the stock market to rise higher and sometimes even surprise,” said Nagji K Rita,Chairman & MD,Inventure Growth & Securities.

Among the sectoral indices,besides realty,banking,capital goods (CG) and PSU – S&P BSE-Auto (2.29 pc),S&P BSE-Oil&Gas (2.19 pc) and S&P BSE-HC (2.04 pc) saw gains.

Total market breadth turned positive as 1,466 stocks closed with gains while 973 scrips finished with losses. 160 stocks ruled steady. Total turnover rose to Rs 2,277.27 crore from Rs 1,671.47 crore yesterday.

* Top Quantity