Sensex jumps 285 points onrate cut hopes

The Sensex today reclaimed the 19000- level after two weeks by surging 285 points, or 1.5%, to close at 19017 points, on the back of strong gains in interest-rate sensitive stocks amid hopes of a bigger-than-expected interest rate cut next month and the government announcing measures to boost exports in the Foreign Trade Policy (FTP).

The Sensex on Thursday reclaimed the 19000- level after two weeks by surging 285 points, or 1.5%, to close at 19017 points, on the back of strong gains in interest-rate sensitive stocks amid hopes of a bigger-than-expected interest rate cut next month and the government announcing measures to boost exports in the Foreign Trade Policy (FTP).

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The NSE Nifty rose by 94 points, or 1.7%, to end at 5,783.

“The Sensex has been buoyant this week largely on the back of renewed economic optimism driven by the fall in gold and crude oil prices,” said Sanjeev Zarbade, vice president, private client group research, Kotak Securities. “The softening of prices in these commodities is expected to relieve pressures on external trade deficit. Apart from this inflation data surprised on the downside.

Better-than-expected trade data also aided sentiments. India’s exports went up for the third straight month in March, offering some relief to the record current account deficit front.

Interest-rates related stocks including HDFC, ICICI Bank, HDFC Bank and SBI attracted good buying support on hopes of rate cut by the RBI in monetary policy review on May 3.