Sensex soars 431 points on rate cut buzz, regains 24,000-mark

he Sensex continued its post-Budget rally for the second straight day by zooming over 431 points to get past the 24,000-mark on Wednesday in anticipation of policy easing by the RBI amid positive global markets.

The talk of a rate cut by the Reserve Bank gained momentum following the government’s commitment to the fiscal deficit road map as displayed in the Budget while the rupee rose against the dollar, which supported the upbeat mood.

Finance Minister Arun Jaitley maintained the fiscal deficit target for 2016-17 at 3.5 per cent of the GDP.

The 30-share index, which had posted its biggest single-day rally of 777.35 points in almost 7 years in Tuesday’s session, added 431.27 points or 1.81 per cent to 24,210.62, with all sectoral indices led by banking, PSU, and realty notching up gains.

The Nifty 50 index reclaimed the 7,300-level by climbing 129.10 points, or 1.78 per cent, at 7,351.40.

In addition, a fresh spell of buying by foreign investors after remaining major sellers buoyed mood.

Hong Kong’s Hang Seng was trading higher by 2.68 per cent while Nikkei surged 4.04 per cent in early trade. Shanghai Composite was quoting 2.25 per cent higher.

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Source:Thehindu

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