Sensex gains around 250 points; Ranbaxy slumps

Reuters Market Eye - The BSE Senex is trading up 249 points, tracking gains in global shares after news Lawrence Summers had dropped from the race to head the Federal Reserve promised to prolong the lifetime of super-easy money.

The BSE Sensex gains 1.25 percent, while the broader Nifty is up 1.22 percent.

Private sector banks lead the gains: ICICI Bank Ltd is up 3.7 percent while HDFC Bank Ltd rises 1.6 percent.

However, Ranbaxy Laboratories Ltd drops more than 30 percent on Monday, after the U.S. Food and Drug Administration issued an import alert against company's Mohali plant.

Also, HSBC downgrades Indian shares to "underweight" from "neutral", citing the recent rally and downside risks to growth

 

(Report Abhishek Vishnoi)