Easing inflation helps Sensex rise 173 pts, the most in a month
Ahead of the general budget, the benchmark Sensex spurted 173 points on Friday led by fag-end buying in bluechips as wholesale inflation sliding to a 7-month low triggered hopes of some easing in interest rates.business Updated: Feb 14, 2014 17:05 IST
Ahead of the general budget, the benchmark Sensex spurted 173 points on Friday led by fag-end buying in bluechips as wholesale inflation sliding to a 7-month low triggered hopes of some easing in interest rates.
After losing 255 points in the previous session, the Sensex rebounded from four-month lows and ended 173.47 points, or 0.86%, higher at 20,366.82. The surge was led by stocks of IT, telecom, banking and refinery sectors. Friday's gain is the best since the 256.61-point jump on January 15.
In the 30-share index, 21 stocks gained led by the three most influential - Reliance Industries, ITC and Infosys. RIL shot up by 1.74%, ITC by 0.96% and Infosys by 1.65%. Tata Motors (3.25%) and GAIL (2.56%) were the biggest gainers.
On similar lines, the 50-share NSE index Nifty jumped 47.25 points, or 0.79%, to close at 6,048.35.
"WPI for January eased to seven-month low level at 5.05%. IIP showed contraction in December. This has triggered hopes of some easing in interest rates in next monetary policy. Rate sensitives, after initial weakness, recovered strongly from day's low," said Rakesh Goyal, Senior vice-president, Bonanza Portfolio.
Data on Thursday had revealed that retail inflation fell to 24-month low at 8.79% in January.
Brokers said the Indian market received another push on reports of firming Asian and European markets as data showed the euro-area economy grew more than forecast in fourth quarter.
stocks were in demand after the government raised about $10 billion from auction of wireless spectrum.
Bharti Airtel rose 0.86% and Idea Cellular by 0.80%. Reliance Communications scrip gained for the first time in six days, surging 1.98%.
Sectorally, the BSE IT sector index gained the most by rising 1.39%, followed by Teck index 1.22%, Oil and Gas index 1.21% and Consumer Durables index 0.94 per cent.
The Sensex lost 9.74 points since last Friday's closing -- the third straight weekly drop.