BSE Sensex snaps 3-day losing streak, jumps 350 pts on low inflation

The BSE Sensex rose for the first time in four days on Friday, surging by 350.77 points, on all-round buying by funds amid smart recovery in the global markets.

Market heavy Reliance Industries (RIL) surged by 3.15 per cent to Rs 814, and second most heavy Infosys by 0.88 per cent to Rs 2,400. The most heavy ITC shot up by 1.41 per cent to Rs 331.40.

The three stocks carry nearly 25 per cent weightage on the Sensex.

Brokers said the WPI-based inflation falling to a 43-month low of 4.7 per cent in May raised hopes of a rate cut by the Reserve Bank of India (RBI) in its mid-quarter monetary policy review on June 17. Also, the rupee stabilising above the 57-level in intra-day trade pushed up local stocks.

The 30-share index of the Bombay Stock Exchange (BSE) started the day strong at 19,022.68 and increased further to settle 350.77 points, or 1.86 per cent, higher at 19,177.93.

The Sensex had slipped below the 19,000-level to 18,827.16 on Thursday, losing 613.91 points, or 3.16 per cent in last three sessions.

Similarly, broad-based National Stock Exchange Nifty rose by 109.30 points, or 1.92 per cent, to close at 5,808.40.

The MCX-SX flagship index, SX40, ended 207.09 points higher, or 1.85 per cent, at 11,386.45.

Buying activity gathered momentum after Finance Minister P Chidambaram said more reform measures are on the anvil to boost economic growth.

Also, overall gains in all the major global markets, including Nikkei, Hang Seng, Euro STOXX, as investors speculated central banks will not immediately scale back stimulus measures, also boosted the trading sentiment here.

Of the 30 Sensex stocks, 26 ended higher led by Hindalco, Tata Motors and Maruti.

Sectorally, the consumer durable sector index gained the most, rising 3.52 per cent to 6,592.76 followed by auto sector by 3.01 per cent to 10,697.47. Realty index rose by 2.86 per cent to 1,602.17 and metal index by 2.50 per cent to 7,940.23.

With inputs from PTI