Sensex back at 19,000 on rate-cut hope

Our Bureau Updated - March 12, 2018 at 04:25 PM.

SENSEX

The BSE Sensex and the NSE Nifty ended the week with sharp gains, mainly on expectation of rate cut by the RBI. This optimism stems from the falling gold and crude oil prices that will help reduce the current account deficit. A sharp decline in commodity prices, according to market watchers, should also temper inflation, leading to an earlier -than-expected rate cut by the RBI on May 3, when it meets to decide on its annual monetary policy. Rate-sensitive sectors such as capital goods, banking, realty and auto rallied the most.

The Sensex regained 19,000 to close at 19,016, up 285.3 points or 1.5 per cent, as foreign institutional investors returned as buyers. On Thursday, they were net buyers for Rs 940.04 crore, even as domestic funds sold shares worth Rs 405 crore.

“The Sensex has been buoyant this week largely on the back of renewed economic optimism driven by the fall in gold and crude prices. The softening of prices in these commodities is expected to relieve pressure on the external trade deficit,” said Sanjeev Zarbade, Vice-President, Private Client Group Research, Kotak Securities. Twelve of the 13 sectoral indices closed higher on the BSE. While over 1,300 stocks ended in the green, 1,047 stocks closed weak.

badrinarayanan.ks@thehindu.co.in

Published on April 18, 2013 10:10