Sensex surges 304 pts to regain 17k level ahead of RBI meeting

The BSE benchmark index shot up to 17,143.68, up by 304.99 points, or 1.81 per cent, the biggest single-day rise in over a month. Sensex had last touched level on July 20.

Investor wealth rose by Rs 1 lakh crore to Rs 60.45 lakh crore with over 1,600 stocks closing higher, while 1,143 scrips ending lower. Buying was so strong that all 13 sectoral indices closed with sharp gains.

Sensex's gains were largely driven by ICICI Bank, Infosys and L&T. SBI topped the buying list rising 4.63 per cent today, followed by Tata Motors and Tata Power that rose 4.1 per cent each.

ICICI Bank, Bhel, L&T, GAIL and Sterlite rose in the 3-3.9 per cent range. ITC and Reliance gained over 1 per cent each supporting the mood. In the 30-share index, 27 scrips rose.

Marketmen said after opening 80 points higher tracking poistive cues from Asian markets, Sensex kept on rising higher as sentiment firmed up on hopes that RBI may announce some measures at its policy meeting tomorrow.

"RBI may respond by releasing more liquidity by CRR or 0.25 per cent cut but hopes are very low," said Raamdeo Agrawal, Joint MD, Motilal Oswal.

The sentiment was aslo helped by speculation that European Union policy makers will take action to ease the region's debt crisis.

Domestic investors were also enthused by reports that the government has prepared contingency plans for 320 districts where monsoon rains have been poor, amidst fears of a 20 per cent shortfall in rains in August-September.

Traders said FIIs, who have pumped in over Rs 8,400 crore in July so far, also bought shares today in large caps and mid cap stocks.

The 50-share NSE index Nifty rose by 99.95 points, or 1.96 per cent to 5,199.80, after touching day's high of 5,206.60. MORE