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Rate cut hopes push Nifty to 4-months highs; banks, realty stocks rise

Statesman News Service | New Delhi |

Indices scaled fresh 4-month highs on Monday as investors bet aggressively on long positions on expectations that the Reserve Bank of India will announce a cut in interest rates in its policy meeting slated later this week. Realty shares and private banks led the rally.

The Nifty scaled 8,800 levels, up 60 points, and hitting its highest level since October 5th. The index rose for the 4th day in a row post the announcement of the annual budget last week. And the uptrend is in its third week as investors have purchased beaten down bluechips 

Realty stocks rose on hopes that a possible rate cut may help reduce outstanding inventory of flat and private banks soared on expectations that a drop in interest rates will boost retail lending and cut down on non performing assets.

This is a week heavy with central bank meetings with governors in Australia, India, New Zealand, the Phillipines, Thailand and Sri Lanka weighing in on monetary policy.

Here are the major events of trading day:

* Ambuja Cement, ACC, ICICI Bank, Asian  Paints and Bharti Infratel rose 1.7-5.6 per cent on the Nifty and were among 39 shares advancing on the index.

* Dr. Reddy's, Idea Cellular, Aurobindo Pharma, Coal India and HCL Tech fell 0.8-2.1 per cent and were among 12 stocks that fell on the Nifty.

* The Sensex jumped 226 points to 28,467 points on the Sensex. Lupin was the top gainer. Coal India lost the most. Reliance Industries was the top traded counter in the Sensex.

* Sun TV, ICICI Bank and Axis Bank were the top traded stocks by value.

* Real Estate players Unitech, JP Associates and HDIL post smart gains on very high volumes as realty shares took the first three slots on the list of most active counters by value.

* The entire market was trending higher with the Nifty 100, 200 and 500 indices gaining 0.8 per cent each. 

* The sectoral space enjoyed a strong uptrend with the realty index leading the group, up 3 per cent. All four benchmarks tracking the banking sector rose between 1-1.2 per cent and the FMCG and Pharma indices, too, joined the rally.

* Bulls were in full command of sentiment on Dalal Street with 1,216 shares rising versus 380 that fell. 

* Bajaj Finserv, Bajaj Finance, Titan, Havells and Bharat Forge were among major winners for the day.

* Motherson Sumi, Colgate, Indigo, Hindustan Zinc and Emami dropped marginally in trade.

* Bulls dominated trade in the derivatives market as well with 137 futures rising compared to 41 that fell.