Rallying Sensex puts on 628 pts in 2 days | business | Hindustan Times
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Rallying Sensex puts on 628 pts in 2 days

The stock market benchmark Sensex rose for a fourth consecutive session on Thursday to its highest close since May 7, riding a global rally on continued expectations that monetary stimulus at home and abroad would spark a recovery in risk assets.

business Updated: Jun 07, 2012 22:04 IST

The stock market benchmark Sensex rose for a fourth consecutive session on Thursday to its highest close since May 7, riding a global rally on continued expectations that monetary stimulus at home and abroad would spark a recovery in risk assets.


The Sensex rose 1.2% to end at 16,649.1 points. It has added 628 points or 3.9% in the last two days. The broader 50-share NSE index rose 1.1% to close at 5,049.7.

Banks such as ICICI Bank extended a rally on hopes that the Reserve Bank of India would cut interest rates on June 18. Global investors are betting that the Federal Reserve will ease monetary conditions for the US economy, and China cut benchmark interest rates by 25 basis points in a surprise move on Thursday — but that action came after the Indian stock markets closed.

Auto makers, which stand to benefit from lower domestic interest rates, gained on Thursday amid optimism that the government will not raise excise duties on diesel vehicle sales.

Foreign institutional investors (FIIs) bought Rs. 169 crore in equities on Wednesday, turning net buyers for the first time in five sessions, but remain net sellers of Rs. 1,808 crore so far in June, indicating they have sold into the rally.

"The rally is primarily driven from global markets and improved sentiment, oil price coming down, and possibility of rate reduction by RBI has helped," said CJ George, MD at Geojit BNP Paribas.

"But it is too early to say weather the rally can sustain."