 "Sensex surges 200 points on RBI rate-cut optimism")
Markets surged in late-morning trades with 30-share Sensex gaining over 200 points after country’s headline inflation dropped to 3-year low fuelling hopes of an interest rate cut by the central bank in the May 3 policy.
Wholesale Price Index (WPI)-based inflation hit a 40-month low of 5.96 per cent in March, compared with 6.84 per cent in February, much lower than the Reserve Bank of India (RBI)'s projection of 6.8 per cent.
Investors are now hoping that the central bank would ease monetary policy more aggressively next month to boost growth into the Asia’s third-biggest economy.
Adding to the optimism was the stupendous decline in the gold prices that may help bring down India’s current account deficit.
Falling bullion prices will help curb gold imports thereby cutting India’s import bill which is the largest consumer of dollar-denominated metal in the world.
Gold Futures for June delivery dropped 0.7% to Rs 25,466 for 10 grams unit on the Multi Commodity Exchange.
Meanwhile, global risk appetite was frail after unexpectedly weak retail sales and lower-than-expected China’s GDP growth raised concerns over the growth recovery in two of the world’s biggest economies.
Asian markets traded mixed with China’s Shanghai Composite Index falling 0.2% to 2,178, Hong Kong’s Hang Seng declined 0.4 % to 21,684, Singapore’s Straits Times rose 0.13% to 3,288 while Japan’s Nikkei was down 0.1% to 13,263.
Back home, the key sectoral indices such as oil & gas, IT, metal sectors lead declines while banks, capital goods, power, FMCG, auto sectors gained on BSE.
The gainers on the BSE included counters such as HDFC and HDFC Bank gaining 3% and 2.5% respectively, Tata Power added 2.9%, Hero MotoCorp gained 2.8% while Maruti Suzuki rose over 2.5% on BSE.
The laggards included counters such as Sterlite Industries and Hindalco Industries declining 1.4% and 0.5% respectively, Infosys and TCS declined 0.6% each, Cipla was down 0.5% on BSE.
The key notable movers included, Uttam Galva Steel that is locked in upper circuit of 5% at Rs 70.95 on BSE on reports that the South Korean steel major Posco will join hands with the company to set up a three million-tonne-per-annum (tpa) integrated steel plant in Maharashtra.
CMC has dipped 5% to Rs 1,345 after reporting a marginal 0.46% quarter-on-quarter (qoq) growth in its consolidated net profit at Rs 61.34 crore for the quarter ended March 2013. IT solutions provider had profit of Rs 61.06 crore in December quarter.
The broader markets gained with mid-caps and small-caps adding 0.4-0.6% on BSE.
The market breadth was positive. Out of 1,949 stocks traded, 1,055 stocks gained compared to 777 declined on BSE.
Wholesale Price Index (WPI)-based inflation hit a 40-month low of 5.96 per cent in March, compared with 6.84 per cent in February, much lower than the Reserve Bank of India (RBI)'s projection of 6.8 per cent.
Investors are now hoping that the central bank would ease monetary policy more aggressively next month to boost growth into the Asia’s third-biggest economy.
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At 11:35AM, the Bombay Stock Exchange's 30-share index Sensex gained 240 points at 18,597.09 while the National Stock Exchange's 50-share Nifty rose 72 points at 5,640.50.
Adding to the optimism was the stupendous decline in the gold prices that may help bring down India’s current account deficit.
Falling bullion prices will help curb gold imports thereby cutting India’s import bill which is the largest consumer of dollar-denominated metal in the world.
Gold Futures for June delivery dropped 0.7% to Rs 25,466 for 10 grams unit on the Multi Commodity Exchange.
Meanwhile, global risk appetite was frail after unexpectedly weak retail sales and lower-than-expected China’s GDP growth raised concerns over the growth recovery in two of the world’s biggest economies.
Asian markets traded mixed with China’s Shanghai Composite Index falling 0.2% to 2,178, Hong Kong’s Hang Seng declined 0.4 % to 21,684, Singapore’s Straits Times rose 0.13% to 3,288 while Japan’s Nikkei was down 0.1% to 13,263.
Back home, the key sectoral indices such as oil & gas, IT, metal sectors lead declines while banks, capital goods, power, FMCG, auto sectors gained on BSE.
The gainers on the BSE included counters such as HDFC and HDFC Bank gaining 3% and 2.5% respectively, Tata Power added 2.9%, Hero MotoCorp gained 2.8% while Maruti Suzuki rose over 2.5% on BSE.
The laggards included counters such as Sterlite Industries and Hindalco Industries declining 1.4% and 0.5% respectively, Infosys and TCS declined 0.6% each, Cipla was down 0.5% on BSE.
The key notable movers included, Uttam Galva Steel that is locked in upper circuit of 5% at Rs 70.95 on BSE on reports that the South Korean steel major Posco will join hands with the company to set up a three million-tonne-per-annum (tpa) integrated steel plant in Maharashtra.
CMC has dipped 5% to Rs 1,345 after reporting a marginal 0.46% quarter-on-quarter (qoq) growth in its consolidated net profit at Rs 61.34 crore for the quarter ended March 2013. IT solutions provider had profit of Rs 61.06 crore in December quarter.
The broader markets gained with mid-caps and small-caps adding 0.4-0.6% on BSE.
The market breadth was positive. Out of 1,949 stocks traded, 1,055 stocks gained compared to 777 declined on BSE.