Betting on hopes that the Reserve Bank of India will cut Repo rate and lower the Cash Reserve Ratio to boost industrial growth, investors went on a buying spree in rate sensitive bank, realty and automobile stocks on Friday.
With stocks from several other sectors too joining the rally, thanks to a postive trend in global markets amid expectations that global central banks will come out with stimulus packages to revive economies, the Indian benchmark stock indices Sensex and Nifty ended with handsome gains on Friday.
The Sensex, which zoomed to 16,967.76 in late afternoon trade and looked well set to sail past the psychological 17,000 mark, ended the day with a gain of 271.95 points or 1.63% at 16,949.83. The Nifty settled at 5139.05, a few points off the day's high of 5146.20, recording a gain of 84.30 points or 1.67%.
Tata Motors ended stronger by 5.8% with a strong global sales report and hopes of a rate cut triggering hectic buying at the counter. Among other automobile stocks in the Sensex, Maruti Suzuki, Mahindra & Mahinra and Hero Motocorp gained 2.4% - 2.7%, while Bajaj Auto ended on a negative note, netting a loss of about 0.7%.
Banking sector heavyweights ICICI Bank (3.2%), HDFC Bank (2.6%) and State Bank of India (1.4%) closed on a bright note. Punjab National Bank, Kotak Bank, Canara Bank, Axis Bank, IDBI Bank, IndusInd Bank and Bank of Baroda were among the other prominent gainers in the Bankex.
Larsen & Toubro ended 2.3% up with some new order wins aiding the surge. Bharti Airtel, Hindustan Unilever, Sun Pharmaceutical Industries, NTPC, Tata Consultancy Services, ITC, Reliance Industries and Tata Power moved up by 1.5% - 2.3%.
The market breadth was positive. Out of 2835 stocks traded on BSE, 1525 stocks moved up. 1185 stocks declined and 145 stocks ended flat.