Sensex Ends 467 Points Higher Ahead of RBI Policy Review

The BSE Sensex and Nifty gained nearly 1.9 per cent each on gains in banking stocks and bluechips like L&T and ONGC. Higher global markets also aided sentiment and buying from foreign investors supported the gains. Overseas investors bought Indian shares worth Rs 2,977 crore ($503.8 million) on Friday, which includes about $364 million (nearly Rs 2,150 crore) from the Canada Pension Plan Investment Board increasing its stake in Kotak Mahindra Bank, provisional exchange data shows. The net purchases mark their first after selling in five out of six sessions. CNX PSU Bank index rose over 4.5 per cent on reports that the government would consider selling some of its holdings and inject capital in some PSU banks. Reports citing sources said the government was "seriously working" on a plan to transfer its equity in public sector banks to a holding company. State Bank of India surged 4 per cent, PNB rose 3.8 per cent while Bank of Baroda rose 3.6 per cent. Some smaller cap PSU banking stocks rose even higher. Syndicate Bank rose 11.5 per cent, IOB 9.25 per cent and Cananra Bank 6.25 per cent were some of the big gainers. Market analyst Sanjeev Bhasin says Nifty has support at 7250-7300 and the RBI could surprise tomorrow with a 25 bps repo rate cut. Mr Bhasin sees Nifty hitting 7400 this week. Although the threat of a below-average monsoon in coming months is expected to fan price pressures, all but three of the 52 economists polled by Reuters predicted the RBI would hold fire when it meets on June 3. One economist expected a 25 basis point increase and the remaining two expected a cut. Larsen & Toubro gained 6.5 per cent to be the biggest Nifty gainer after the engineering company's fourth-quarter profit beat analyst forecasts. NMDC gained 3.3 per cent after the miner said on Friday its January-March profit rose by 34 per cent to Rs 1,962 crore. The Sensex ended 467 points higher at 24,684 while Nifty rose 132.55 points to 7,362.50.

Sensex Ends 467 Points Higher Ahead of RBI Policy Review

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