Mumbai: The Bombay Stock Exchange benchmark Sensex rose over 286 points at mid-session on Tuesday on buying by funds and retail investors after the Reserve Bank of India lowered its forecast for inflation.
Encouraging third quarter earnings announced by the country’s top lender, State Bank of India, and ICICI Bank also influenced the trading sentiment, traders said.
The Sensex, which had gained over 176 points in the opening trade, was up by 286.99 points at 8,961.34 points at mid-session with all the sectoral indices, led by banking, metal and oil and gas leading the surge with gains up to 4.91%.
In likewise manner, the broader National Stock Exchange Nifty, moved up by 88.10 points, or 3.28% to 2,766.65 at mid-session.
Stock brokers said sentiments were buoyed after the RBI predicted in its credit policy that inflation will ease to below 3% by this fiscal-end, boosting optimism that interest rates will be lowered to boost growth.
Major gainers among banking stocks, SBI gained Rs35.05 , or 3.36% at Rs1,076.80, ICICI Bank moved up by Rs1.55, or 0.43% at Rs365.85, HDFC Bank gained Rs12.65, or 1.45% at Rs885 and Union Bank rose by Rs2.80, or 1.95% at Rs146.65.
Other gainers were Reliance Industries, Tata Steel, Sterlite Industries, Infosys Technologies, Wipro, Tata Consultancy Services, Sun Pharmaceuticals, Grasim Industries and Bharti Airtel.