The Sensex posted its biggest daily percentage gain in almost two weeks on Friday as interest rate-sensitive stocks such as State Bank of India rallied on expectations the RBI will ease monetary policy next week.
Maruti Suzuki India Ltd
Shares in banks, auto makers, and property developers have rallied since last month on expectations the Reserve Bank of India will start cutting interest rates this year, starting with the policy review on Tuesday.
Most economists expect the RBI to cut India's key lending rate by 25 basis points on Tuesday, for the first time in nine months.
"RBI would be cutting rates on January 29 and it would be a big positive for the market. Quantum of rate cut should not matter," said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.
Nifty will be making a new high this year after the reversal of interest rates, Rita added.
The Sensex rose 0.9 percent, or 179.75 points, to end at 20,103.53, its biggest daily gain since January 14.
The Sensex gained 0.32 percent for the week, its second weekly gain in three weeks
The Nifty rose 0.92 percent, or 55.30 points, to end at 6,074.65, and rose 0.17 percent for the week.
Banks were among the leading gainers for the day. State Bank of India rose 2.22 percent, while ICICI Bank Ltd
Bank of Baroda
Shares in ITC Ltd
Shares in Reliance Industries
(Additional Reporting by Abhishek Vishnoi; Editing by Anupama Dwivedi)