Sensex gains 272 points on rate cut hope, global cues

Mumbai, June 15 (IANS) Backed by firm global cues, a benchmark index of Indian equities markets Friday gained 272 points on hopes of a rate-cut by the Reserve Bank of India (RBI) next week. Rate sensitive stocks such as autos, banks and realty were the top gainers.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,701.28 points closed at 16,949.83 points, up 1.63 percent or 271.95 points from its previous close of 16,677.88 points.

The Sensex touched a high of 16,967.76 points and a low of 16,701.28 in intra-day trade. The BSE midcap index rose 33.91 points while the smallcap index gained 28.97 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange closed 1.67 percent higher at 5,139.05 points.

The RBI is scheduled to announce first mid-quarter review of the monetary policy June 18. It is widely believed that the RBI would take some action to revive slowing economic growth.

The BSE automobile index rose 2.57 percent followed by the banking index that gained 2.19 percent, while the realty index rose 1.78 percent.

Major Sensex gainers were Tata Motors, up 5.75 percent at Rs.240.05; ICICI Bank, up 3.11 percent at Rs.844.90; Coal India, up 2.72 percent at Rs.339.95; Hindalco Inds, up 2.70 percent at Rs.123.40; and Maruti Suzuki, up 2.70 percent at Rs.1,108.

The only three Sensex losers were Sterlite Inds, down 1.57 percent at Rs.100.25; Bajaj Auto, down 1.41 percent at Rs.1,527.55; and ONGC, down 0.67 percent at Rs.265.75.

Traders and brokers said a firm trend on Asian bourses after gains at the US market on speculation of more stimulus measures from the Federal Reserve helped improve trading sentiment. The overseas markets rebounded on hopes that major central banks were preparing for coordinated action if results of Greek elections Sunday strain global financial markets.

At the closing bell here, France's CAC was 1.57 percent up, while Germany's DAX was trading 0.95 percent higher. Britain's FTSE 100 was also up 0.46 percent.

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