With prediction of above normal monsoon, falling inflation below 5 per cent, and the expected rate cut by the Reserve Bank of India (RBI), the market was bullish on Wednesday. As auto and banking stocks among others rallied on hopes of better rural sales, the benchmark BSE Sensex rose by 481.16 points to 25,626.75, which is the highest level in over three months.
The buying spree of domestic investors also boosted the stocks just before two days holidays on Thursday and Friday on account of Ambedkar Jayanti and Ram Navmi, respectively.
After halting two straight weekly slide, the Sensex and Nifty logged hefty rise of 952.91 points or 3.86 per cent and 295.25 points or 3.76 per cent, respectively.
Experts, however, are of view that considerable rise in industrial output, fall of inflation and good monsoon hopes are the factors of market’s upward movement.