Sensex rallies over 600 points as rate cut chances rise

The benchmark Sensex went from strength to strength as it rallied over 600 points after buying gained momentum across sectors led by FMCG, banks and industrials as talks of a likely repo rate cut got louder after the presentation of the Budget.

The broader Nifty traded above the 7,100-level. Finance Minister Arun Jaitley's decision to stay on the fiscal consolidation path raised optimism of a rate reduction by RBI to spark private investment and boost growth.

Sentiment remained upbeat after the Union Budget provided a higher outlay for infrastructure and farming sectors.

Fund managers lapped up mid-cap and small-cap shares too.

BSE at 1253 hours was up 608.74 points, or 2.65% at 23,610.74. While the NSE at 1252 hours was up 184.05 points, or 2.63% at 7171.10. 

Among those that gained were ITC 7.98%, ICICI Bank 5.475, Hero MotoCorp 5.115, Maruti Suzuki 4.62%, GAIL 3.965, Axis Bank 3.165 and Wipro 3%.

Foreign portfolio investors (FPIs) remained sellers as they net sold shares worth Rs 2,018.02 crore on Monday, provisional data from stock exchanges showed.

Asian markets ruled higher after China's central bank cut further the reserve requirement ratio by 0.5% in an attempt to calm investor jitters. US stocks closed lower on Monday on late-day selling as investors shrugged off oil price rise and off-loaded energy and healthcare shares.