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Sensex surges 257 points as easing inflation spurs rate cut hopes

Wednesday, 15 January 2014 - 11:01am IST Updated: Wednesday, 15 January 2014 - 5:12pm IST | Place: Mumbai | Agency: PTI

All-round buying after wholesale inflation declined to a five-month low lifted the benchmark Sensex on Wednesday by nearly 257 points to its highest level since December 9 on hopes the RBI will lower interest rate to boost economic growth.

The NSE barometer Nifty also jumped over 79 points to reclaim the 6,300-point mark as it ended at 6,320.90. Supported by gains in rate-sensitive banking, realty and auto sector stocks, the 30-share BSE Sensex rallied by a whopping 256.61 points, or 1.22 %, to end at 21,289.49, its highest closing since 21,326.42 on December 9. 

Overall, 29 out of 30 Sensex-based scrips closed higher. HDFC and L&T led the gainers, while Tata Steel closed flat. Other prominent gainers included Tata Motors, Hero MotoCorp, BHEL, Sesa Sterlite and Cipla.

Yesterday, Sensex had lost 101.33 points on profit-taking.

Brokers said along with the rising trend in other Asian and the European markets after the World Bank raised its global growth forecast, wholesale inflation declining to a five-month low of 6.16 % in December, raised hopes that the Reserve Bank will ease interest rates and prop up growth.

However, profit-booking by some traders at higher levels, trimmed gains in some stocks, they added.

Shares of state-owned Coal India Ltd ended 1.81 % higher after the company declared an interim dividend of Rs 29 per share, or a record 290 %, for 2013-14. It had soared over 6 % in early trade.

Out of 13 sectoral indices, 10 barometers closed with gains between 0.37 % and 1.98 %.

The BSE Capital goods sector index rose 1.98 %, Banking index by 1.59 %, Realty index by 1.31 % and Auto index by 1.22 %.

Shares of Yes Bank ended 1.95 % higher after bank reported 21.4 % rise in net profit at Rs 415.6 crore for its third quarter ended December 2013. 

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