Sensex climbs 161 points on rate cut hope, positive global cues

Mumbai: The benchmark BSE Sensex surged about 161 points to 28,401.47 in opening trade today as investors and funds widened their bets amid hopes of a rate cut by the Reserve Bank amid a firming trend in global markets.

Moreover, the rupee appreciating by another 10 paise to 67.21 against the dollar in early trade today sent out positive vibes to the stock markets.

Extending its post-Budget rally for the fourth straight day, the BSE 30-share barometer surged 160.95 points, or 0.57 per cent, to 28,401.47. The gauge had rallied 584.56 points in the previous three sessions after the presentation of the Budget. All sectoral indices led by oil and gas, banking and PSUs were quoting in the green, adding up to 1.02 per cent. Also, the NSE Nifty gained 45.60 points, or 0.52 per cent, to 8,786.55.

Brokers said that sustained buying by investors on hopes of a rate cut by the Reserve Bank of India at its policy meet scheduled on Wednesday, and increased inflows by foreign funds bolstered trading sentiments. A firming trend in Asia tracking weekend gains at Wall Street, fuelled by a better-than-expected jump in US jobs, too accelerated buying activity on the domestic bourses here.

Japan’s Nikkei was up 0.30 per cent while Hong Kong’s Hang Seng rose 0.68 per cent in early trade today. Shanghai Composite was quoting 0.45 per cent higher. The US Dow Jones Industrial Average ended 0.94 per cent higher in Friday’s trade. This is published unedited from the PTI feed.