Rate easing and rupee buoy markets; Sensex gains 376 points

Mumbai, Sep 30 (IANS) A day after a massive easing of key lending rates by the Reserve Bank of India (RBI), a barometer of the Indian equity markets provisionally closed with gains of 376 points or 1.46 percent on Wednesday.

The Indian equity markets continued their upward trajectory after the RBI on Tuesday cut key lending rates by 50 basis points. The markets were anticipating an easing of only 25 basis points.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange on Tuesday closed with gains of 161.82 points or 0.63 percent.

Analysts cited that more than expected monetary easing coupled with a dovish outlook by the country’s central bank, strengthening rupee value and stable Asian bourses supported the Indian markets.

Furthermore, the Supreme Court’s verdict in favour of Mauritius-based foreign fund Castleton Investment has shed more clarity over the applicability of minimum alternate tax (MAT) on foreign portfolio investors (FPIs).

The rupee gained by 21 paise and was trading at 65.75 against a US dollar from its previous close of 65.96 against a greenback.

On Wednesday, bullish sentiments were observed at the wider 50-scrip Nifty of the National Stock Exchange (NSE). It provisionally closed with gains of 106.30 points or 1.36 percent at 7,949.60 points.

The S&P BSE Sensex which opened at 25,986.52 points, provisionally closed at 26,154.83 points (at 3.30 p.m.) — 376.17 points or 1.46 percent up from the previous day’s close at 25,778.66 points.

The Sensex touched a high of 26,179.70 points and a low of 25,918.21 points in the intra-day trade.

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