Sensex closes 180 points higher on rate cut hopes
By PTI - MUMBAI
24th January 2013 09:57 AM
The Bombay Stock Exchange benchmark Sensex on Friday bounced back by nearly 180 points to close at 20,103.53 on heavy buying in interest-sensitive stocks ahead of Reserve Bank of India credit policy on Tuesday and encouraging earnings by Maruti Suzuki.
After a better start, the Sensex spurted by 179.75 points, or 0.90 per cent to end at 20,103.53 helped by rise in Tata Motors, Maruti Suzuki, SBI, L&T and HDFC Bank shares.
Rate-sensitive sectors like real estate, auto, consumer durables, capital goods and banks saw good buying on hopes the central bank will cut rates by at least 0.25 per cent on January 29 to boost economic growth, brokers said.
The broad-based National Stock Exchange index Nifty rose by 55.30 points, or 0.92 per cent to close at 6,074.65.
Investors also took advantage of buying stocks following the previous day's plunge when Sensex fell by 103 points, brokers added.
"Constant liquidity in the market is holding the indices in upward zone, i.e., Nifty above 6,000 and Sensex over 20,000. Also, rate cut hopes are high this time," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
Maruti Suzuki rose by 4.15 per cent, the best performer among 30-scrip Sensex today, as it posted attractive earnings.
Tata Motors, the owner of Jaguar Land Rover, shot up by 2.55 per cent to Rs 301.05.
Among lenders, State Bank of India shot up by 2.23 per cent to Rs 2,513.25, ICICI Bank by 0.76 per cent to Rs 1,172.75, Bank of Baroda by 4.71 per cent to Rs 880.70 and Bank of India by 4.70 per cent to Rs 364.40.
In realty space, DLF, Unitech India Bulls Realestate and Sobha Developers closed with gains on expectations that a rate cut would boost home loan business.
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