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The financial market rallies on Tuesday on expectations of a RBI rate cut

The financial market rallies on Tuesday on expectations of a RBI rate cut

India Blooms News Service | 01 Mar 2016, 10:42 pm
Mumbai, Mar 1 (IBNS) The Indian benchmark indices, which had reacted negatively to the Union Budget 2016 on Monday and posted a decline, rallied on Tuesday based on positive global cues and on expectations of a repo rate (the rate at which the central bank lends money to commercial banks) cut by the Reserve Bank of India (RBI).

The BSE Sensex was up 777 points on Tuesday, posting its biggest single-day gain in  seven years. The Sensex closed at 23779.35.

The NSE Nifty surged 235.25 points to 7222.30.

According to market reports, with the finance minister Arun Jaitley retaining the fiscal deficit target of 3.9% of the GDP in the Union Budget 2016 presented on Monday, the RBI is also likely to reconsider its interest rate reduction policy.

The RBI will review its monetary policy on April 5. The last review was in Feb 2 when the RBI did not offer any rate cuts but had said that it was looking at the budget for future policy reviews.

The Indian rupee too rallied to touch 67.96 per US dollar.

Banks, technology, auto, infra and FMCG stock were largely responsible for the market boost.

ITC, ICICI Bank, Maruti, Hero and Adani Ports were among the top gainers.

ONGC, HUL and Dr Reddy's Labs were among the top losers.

 

Image: Wikimedia Commons
 

The financial market rallies on Tuesday on expectations of a RBI rate cut

India Blooms News Service
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