Sensex regains 19k level after two weeks on rate-cut hopes
The BSE benchmark Sensex today regained 19,000 level after two weeks by climbing almost 300 points led by smart gains in HDFC, ICICI Bank, L&T and HDFC Bank on rate-cut hopes amid government announcing measures to boost exports in foreign trade policy.
The Sensex surged by 285.30 points, or 1.52 per cent, to close at 19,016.46, a level last seen on April 2.
Similarly, the National Stock Exchange index rose by 94.40 points, or 1.66 per cent, to 5,783.10 led by stocks of consumer durable, capital goods and banking sectors.
With a view to boost exports, the government has announced several measures in foreign trade policy including extension of the popular Export Promotion Capital Goods scheme to all sectors and sops for Special Economic Zones (SEZs).
Banking stocks were in demand on expectation that declining commodity prices will cool inflation and give the Reserve Bank of India room to cut interest rates in its monetary policy meet on May 3.
A firming global trend as Italian and Spanish bonds gained, raising hopes of a global economic recovery, further supported the market.
Besides, slowing Chinese growth and concerns over weaker global energy demand weighed on oil prices today, with Brent crude stuck below USD 100 a barrel, also boosted the market sentiment here.
In 30-BSE index components, 26 stocks gained led by Bharti Airtel, HDFC Ltd, State Bank of India, ICICI Bank, ITC, L&T, Mahindra and Mahindra and Maruti Suzuki.
The consumer durable sector index gained the most by rising 2.78 per cent to 7,112.02 followed by capital goods by 2.63 per cent to 9,458.33. Banking index rose by 2.49 per cent to 14,056.76 and auto index by 2.26 per cent to 10,420.11.
Source : Times Of India.