Sensex up 148 pts at 1 week high; RBI offers rate-cut hope

Mumbai, PTI | Updated : 17 June 2013, 05:40 PM

Stock markets rose for the second straight day on Monday with the BSE barometer Sensex closing up by 148 points at one-week high on value buying in auto, IT and oil & gas shares amid RBI holding key rates on expected lines but offering hopes of rate cut in near future.     

The 30-share benchmark index closed higher by 147.94 points, or 0.77 per cent, at 19,325.87 points, a level not seen since last week. It hovered in a wide range of 19,344.28 and 19,084.68 points during the day.     

"Positive global markets and buying from lower levels after many stocks reached oversold zone, boosted the market sentiment," Bonanza Portfolio Senior Research Analyst Nidhi Saraswat said.     

As expected by market participants, RBI today kept policy rates and CRR unchanged citing elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows.     

"The move was largely anticipated by market participants after recent weakening of rupee; however the change in tone comes as positive surprise," said Kunal Shah, Fund Manager -Debt, Kotak Mahindra Old Mutual Life Insurance Ltd.     

"The guidance provided by RBI is in sharp contrast to way it communicated in past when it perceived monetary space was shrinking," he added.     

RBI in its mid-quarter policy review said a durable receding of inflation will open up the space for monetary policy to continue to address risks to growth.     

The NSE 50-share Nifty also rose by 41.65 points or 0.72per cent to 5,850.05. Mahindra &Mahindra rose the most by 4.43 per cent. "The street was upbeat on the stock after it's auto component business made a deal with Spanish auto major CIE," Inventure Growth & Securities Chairman & MD Nagji K Rita said.     

Bharti Airtel gained close to 2 per cent after it allotted around 200 million shares to Doha-based Qatar Foundation Endownment for around Rs 6,796 crore, Rita said.   

RIL and Infosys too rose by over 1 per cent helping the barometer post gains for second session in a row. Among global markets, benchmark indices in Hong Kong, Japan, Singapore and Taiwan rose by 0.69 per cent to 2.73 percent while European markets were positive in early trade.

First Published: Monday, June 17, 2013 05:34 PM

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