Sensex jumps 130 points on rate cut hopes

Mumbai: The benchmark BSE Sensex surged by nearly 130 points in early trade on continued buying by  investors amid hopes of rate cut by the Reserve Bank after  weak IIP numbers.  A higher trend at other Asian markets as investors await  developments in last-ditch talks aimed at a new bailout deal  for Greece, influenced sentiment, brokers said.  The 30-share barometer was trading higher 129.81 points,  or 0.46 per cent, at 27,791.21 with healthcare, teck, IT, oil  & gas, realty and consumer durables sector leading the gains. 

The Sensex had gained 87.74 points in the previous session.  On similar lines, the NSE Nifty recaptured the 8,400-mark  by rising 44.25 points, or 0.52 per cent, at 8,404.80.  Growth in industrial production in May slowed to 2.7 per  cent from 5.6 per cent a year ago, dragged down by  manufacturing, strengthening the case for an RBI rate cut,  triggering buying by participants. Among other Asian markets, Hong Kong's Hang Seng was  up 0.19 per cent, Japan's Nikkei gained 1.17 per cent and  the Shanghai Composite Index rose 2.28 per cent.  The US Dow Jones Industrial Average ended 1.21 per cent  higher in Friday's trade.