Rate cut chances brighten, Sensex rallies over 543 points

Mumbai: The benchmark Sensex went from strength to strength as it rallied over 543 points after buying gained momentum across sectors led by FMCG, banks and industrials as talks of a likely repo rate cut got louder after the presentation of the Budget.

The broader Nifty traded above the 7,100-level. Finance Minister Arun Jaitley's decision to stay on the fiscal consolidation path raised optimism of a rate reduction by RBI to spark private investment and boost growth. Sentiment remained upbeat after the Union Budget provided a higher outlay for infrastructure and farming sectors.

Fund managers lapped up mid-cap and small-cap shares too. The 30-share barometer quoted at 23,545.72 at 1203 hours, a jump of 543.72 points, or 2.36 per cent. The NSE Nifty climbed 168.80 points, or 2.42 per cent, to 7,155.85 at 1203 hours. Among those that gained were ITC 7.98 per cent, ICICI Bank 5.47 per cent, Hero MotoCorp 5.11 per cent, Maruti 4.62 per cent, GAIL 3.96 per cent, Axis Bank 3.16 per cent and Wipro 3 per cent.

Foreign portfolio investors (FPIs) remained sellers as they net sold shares worth Rs 2,018.02 crore yesterday, provisional data from stock exchanges showed. Asian markets ruled higher after China's central bank cut further the reserve requirement ratio by 0.5 per cent in an attempt to calm investor jitters.

US stocks closed lower yesterday on late-day selling as investors shrugged off oil price rise and off-loaded energy and healthcare shares.