Sensex rebounds 180 pts on rate cut hopes
The Sensex today bounced back by nearly 180 points to close at 20,103.53 on heavy buying in interest-sensitive stocks ahead of RBI credit policy on Tuesday and encouraging Maruti earnings.business Updated: Jan 25, 2013 17:12 IST
The BSE benchmark Sensex on Friday bounced back by nearly 180 points to close at 20,103.53 on heavy buying in interest-sensitive stocks ahead of RBI credit policy on Tuesday and encouraging earnings by Maruti Suzuki.
After a better start, the Sensex spurted by 179.75 points, or 0.90% to end at 20,103.53 helped by rise in Tata Motors, Maruti Suzuki, SBI, L&T and HDFC Bank shares.
Rate-sensitive sectors like real estate, auto, consumer durables, capital goods and banks saw good buying on hopes the central bank will cut rates by at least 0.25% on January 29 to boost economic growth, brokers said.
The broad-based National Stock Exchange index Nifty rose by 55.30 points, or 0.92% to close at 6,074.65.
Investors also took advantage of buying stocks following the previous day's plunge when Sensex fell by 103 points, brokers added.
"Constant liquidity in the market is holding the indices in upward zone, ie, Nifty above 6,000 and Sensex over 20,000. Also, rate cut hopes are high this time," said Rakesh Goyal, senior vice-president, Bonanza Portfolio Ltd.
Maruti Suzuki rose by 4.15%, the best performer among 30-scrip Sensex today, as it posted attractive earnings.
Tata Motors, the owner of Jaguar Land Rover, shot up by 2.55% to Rs 301.05.
Among lenders, State Bank of India shot up by 2.23% to Rs 2,513.25, ICICI Bank by 0.76% to Rs 1,172.75, Bank of Baroda by 4.71% to Rs 880.70 and Bank of India by 4.70% to Rs 364.40.
In realty space, DLF, Unitech India Bulls Realestate and Sobha Developers closed with gains on expectations that a rate cut would boost home loan business.