Hope of a possible rate cut after RBI Governor D Subbarao said in Frankfurt he had taken note of falling inflation, inspired bulls so much that the Sensex vaulted 490 points on Wednesday and closed at a 28-month high of 20,200, while Nifty surged over 150 points to end at 6,100- level, making investors richer by Rs 1.30 lakh crore in a day. Market analysts say so thirsty is the market for any positive news that whenever there is any, bulls participate in the rally with full force.
The Sensex resumed higher and gradually rose to settle at 20,212.96, a rise of 490.67 points. Previously, it had concluded at 20,301.10 on January 5, 2011. Wednesday’s gain is the highest in percentage terms since June 2012.