Sensex rebounds 242 pts ahead of RBI policy; global cues aid
Snapping a two-session losing trend, Indian stock markets on Monday ended on a positive note with the Sensex rebounding about 242 points to 25,723.16 on buying in banking, consumer durables and auto stocks ahead of the RBI monetary policy review.
IT stocks also supported gains in view of a weak rupee. Global cues also helped as China was buoyed by recent data indicating recovery and reported intervention by Portugal's central bank to rescue crisis-hit Banco Espirito Santo, boosted confidence.
The 30-share barometer, which had lost 606.58 points in the previous two sessions, commenced on a strong footing to touch the day's high of 25,754.42. It settled with a gain of 242.32 points, or 0.95%, at 25,723.16. Intra-day, it had fallen to a low of 25,531.38 but recovered smartly.
The 50-share NSE Nifty rose by 81.05 points, or 1.07%, to close the session at 7,683.65 after shuttling between 7,694.80 and 7,622.05 intra-day. It had slipped 189 points in past two days.
Expectations that the Reserve Bank of India (RBI) in its monetary policy review tomorrow will give some relief supported the bullish market sentiment, brokers said. However, consensus is of the view that RBI will not cut rates on Tuesday.
Interest-sensitive stocks such as SBI, ICICI Bank, and Axis Bank gained about 1% ahead of RBI meet outcome.
Shares of Infosys zoomed 3.66% to end the day as the best Sensex gainer. Hindalco spurted 3.12%, Sesa Sterlite 2.44%, Wipro 2.42%, Maruti Suzuki 2.40% and Bajaj Auto 1.72%. Overall, 25 constituents of the 30-scrip Sensex rose.
The weakness in the rupee, which is trading at over 3-month low at 61.08 (intra-day) against the dollar, helped IT stocks, which get a large chunk of sales in dollars.
Meanwhile, overseas investors pumped in $6 billion into the Indian securities market in July - taking overall net inflows since beginning of 2014 to over $26 billion.
Sectorwise on Monday, the BSE Consumer Durables index gained the most by rising 3.20%, followed by IT index (2.08%), Power index (1.73%), Teck index (1.73%) and Banking index (0.70%).