Rate cut hope peps up sensex

MUMBAI: The equity markets bounced back on Wednesday amidst high bout of volatility as poor growth in India’s industrial production (IIP) during March and a sharp fall in retail inflation in April fueled hopes about a rate cut by the RBI at its forthcoming policy meet.

The Sensex climbed 373.62 points to end the trading session at 27,251 while the Nifty closed at 8,235, gaining 108.50. The rally was led by interest rate sensitive banking and auto sector stocks. “The global markets traded in the positive territory following a better than expected domestic growth registered by France and Italy,” said Alex Mathews of Geojit BNP Pari-bas Financial Services.