Sensex vaults 376 pts as RBI rate cheer spills over

Driven by upbeat global markets and and RBI's surprise 50 bps rate cut yesterday, the benchmark BSE Sensex today rallied over 376 points -- its biggest single-day percentage gain in three weeks -- as it retook the 26,000-mark on continued buying in blue-chips.
In line with the trend, the NSE Nifty topped 7,900.
On Tuesday, RBI Governor Raghuram Rajan caught many off-guard by cutting the policy rate by 50 bps to 6.75 per cent, a four-and-a-half-year low, in a bigger-than-expected move to help spur economic growth.
He also allowed a steady increase in foreign investment limit in government securities, which emboldened investors.

The 30-share index barometer stayed in the green throughout and ended at 26,154.83, up 376.17 points, or 1.46 per cent -- its biggest single-day percentage gain since September 9.
The index has added 538 points over the past two days.

The broader NSE Nifty soared 105.60 points, or 1.35 per cent, to close the day at 7,948.90.
"A sharp rate cut by RBI yesterday in its policy has created the positive sentiment and renewed buying interest. Firm global markets and strengthening rupee too helped," said Gaurav Jain, Director, Hem Securities.
Major Asian indices closed firm tracking the overnight gains on Wall Street, which had a positive impact on Europe where shares ruled strong in their early trade.

The rupee, at 65.59, closed the day on a firmer footing against the dollar, which gave sentiment a leg-up too.
Investors, on their part, are keeping an eye on China PMI numbers due on Thursday and non-farm US payrolls slated for Friday.
The day belonged to Bharti Airtel, BHEL, GAIL, Coal India, HUL and Infosys, who gained big time.
In contrast, banking stocks SBI and Axis Bank, which rose yesterday, lost some ground today.
Of the 30-share Sensex team, 24 won.
Among sectoral indices, metal zoomed 3.36 per cent, with Tata Steel and Hindalco walking away with substantial gains by rising up to 5.24 per cent.

FMCG too rose followed by infra, technology, realty and power.
Broader markets such as the BSE mid-cap and small-cap rose 1.71 per cent and 1.07 per cent, respectively.
Globally, Asian markets closed in the positive terrain and European indices followed suit in their early deals.