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HindustanTimes Tue,16 Sep 2014

Sensex gains 95pts as slowing inflation fuels rate cut hopes

PTI  Mumbai, August 14, 2012
First Published: 10:12 IST(14/8/2012) | Last Updated: 17:24 IST(14/8/2012)

The Sensex today climbed to a fresh five-month high of 17,728.20 after it gained nearly 95 points on sustained buying following lower-than-expected July inflation numbers that fuelled hopes of rate cut by RBI.

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The BSE benchmark index, which had gained 76 points in the previous session, advanced further by 94.75 points, or 0.54% to 17,728.20, a level last seen on March 15.

"Inflation numbers came out lower than the street expectation. July inflation numbers came in at 6.87% below street expectation of 7.24 per cent...this moderation in inflation raises expectation for some monetary easing," said Milan Bavishi, Head Research, Inventure Growth & Securities.

The upsurge was led by stocks of refiners, banks and metal sectors. The gainers in 30-share Sensex were led by Tata Motors, Tata Steel, Jindal Steel and ICICI Bank which gained in th 2-3 per cent range.ONGC, Gail and RIL also gained amid strong buying activity.

On the other hand, Sun Pharma which lost 2.1% today was the worst performing stock in Sensex.

The 50-share National Stock Exchange index Nifty rose by 32.45 points, or 0.61% to 5,380.35, after touching a day's high of 5,387.05.

Brokers said, after a weak start, the trading sentiment improved as inflation numbers came in lower-than-expected.

They added that domestic market received further support on firming global stock markets on reports that policy makers are preparing to stimulate the Eurozone economy through a series of steps.


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