The Sensex climbed to its highest close in nearly seven months on Tuesday, with lenders among gainers on hopes the Reserve Bank of India (RBI) will consider easing banks’ reserve requirements to help ease tight cash conditions.
Energy conglomerate Reliance Industries rallied 3.1 per cent on talk of a petrochemical joint venture announcement.
Kingfisher plunged nearly 20 per cent at one stage as the crippled carrier edged closer to the brink after mass cancellation of flights and resignation of pilots. The stock, which has slumped about 60 per cent since the start of last year, covered the day’s losses and ended up 0.4 per cent on hopes it would get bank finance, analysts said.
The Sensex rose 0.76 per cent, or 139.26 points, to 18,428.61, its highest close since July 27, 2011. Nineteen of its constituents gained.
“The expectation from the government is to set the policy framework right on the fiscal side in the budget which is driving new money into the market,” said Deven Choksey, managing director, K R Choksey.
