Taking investors on a roller costar ride, the benchmark Sensex again surged by 256.61 points to its second-highest closing level of 21,289.49. Recovering from Tuesday’s profit booking, Sensex sky rocketed on the back of positive inflation data. Analysts said that since the inflation has eased down, hopes of Reserve Bank of India (RBI) might finally start the process of reducing rates.
Just like Sensex, the broader index Nifty also surged by 79.05 points and managed to close above 6,300 mark. Nifty zoomed to 6,320.9, highest closing since December 10, 2013. Backed with investors making fresh entries in rate sensitive stocks, Sensex has gained 531 points in the last three sessions. Investor sentiment drastically improved on expectations of rate cut by RBI in the coming monetary review on January 28. Ten of the 12 BSE sectoral indices moved up with rally led by capital goods as it gained by almost 2 per cent.
Rate sensitive sectoral indices including bank, real estate and auto surged by 1.59 per cent, 1.31 per cent and 1.22 per cent. Consumer durable was the biggest loser as it slid by 0.75 per cent while healthcare index fell marginally by 0.02 per cent.
The Sensex opened higher at 21,091.46 and firmed up to the day’s high of 21,302.73. It ended at 21,289.49, a gain of 256.61 points or 1.22 per cent. It was highest closing level for the index since ending at a record 21,326.42 on December 9. While Sensex and Nifty rallied, mid cap and small cap indices gained 0.18 per cent and 0.30 per cent, respectively.