Sensex Rises Over 300 Points on Rate Cut Hopes
The Sensex rose over 300 points and Nifty moved above its crucial psychological level of 7,050 on hopes of rate cut by the Reserve Bank of India a day after Finance Minister Aun Jaitley stuck to his path of fiscal consolidation by maintaining fiscal deficit target of 3.5 per cent of GDP for the financial year 2017.
At day’s highest level, the Sensex rose as much as 302 points to 23,303.66 and Nifty advanced 91 points to 7,077.90.
8:10 a.m.: The Indian benchmark indices are likely to open higher tracking positive trading of Nifty futures on Singapore Stock Exchange amid positive global cues.
The Nifty futures traded on Singapore Stock Exchange also known as the SGX Nifty was trading 0.60 per cent or 41 points higher at 7,048.
Meanwhile, in a boost to the equity markets, The People’s Bank of China (PBOC) said on its website on Monday that it cut its reserve requirement ratio, or the amount of cash that banks must hold as reserves, by 50 basis points.
Most of the Asian markets were trading on a positive note. China’s Shanghai Composite advanced 0.45 per cent and Hong Kong’s Hang Seng rose 0.56 per cent. On the other hand, Japan’s Nikkei fell 0.7 per cent.
Overnight, Wall Street ended lower on Monday, falling out of lockstep with oil prices as energy and healthcare shares lost ground.
US indexes gave up early gains despite a 3 percent rally in US oil prices. Stocks and oil have been strongly correlated in recent months as crude prices tanked to decade lows, and their movements in opposite directions during the session was notable to investors.
The Dow Jones industrial average fell 0.74 per cent to 16,516.5 points and the S&P 500 lost 0.81 per cent to 1,932.22.
The Nasdaq Composite dropped 0.71 per cent to 4,557.95.
Back home, foreign institutional investors continued to sell Indian shares in the cash segment. According to the NSE data, the FIIs sold shares worth Rs. 2,018.02 crore while domestic institutional investors bought shares worth Rs. 1,445.25 crore on Monday.
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Source:Ndtv
Sensex
