Close: Sensex rally on stimulus hopes, ends 182 pts up

Close: Sensex rally on stimulus hopes, ends 182 pts up

New Delhi: The Bombay Stock Exchange benchmark Sensex made recovery from day’s intial low to end 1.92% up on Tuesday, 30 December buoyed by expectations of a second economic stimulus package by the government and possible interest rate cut by RBI.

Markets started the day choppy but bounced back in the afternoon session as sectors like capital goods, bank and realty led the rally, with some bullish sentiment among metal, power and auto stocks.

The 30-share BSE Sensex ended at 9,716.16 mark or 182.64 points higher and the broad based 50-share NSE Nifty ended at 2979.50, up by 57.30 points, a gain of 1.96%.

Banking sector rose the most on hopes of interest rate cut by Reserve Bank of India.

Despite controversy surrounding Satyam Computer Services and its independent board members resigning, their shares remained top gainer on the BSE Sensex, trading higher by 8.33% at Rs160.60.

Other top gainers on the index were Reliance Communications 7.16% to Rs228.10, Jaiprakash Associates 6.01% to Rs83.75, Mahindra and Mahindra 5.75% to Rs270.45 and Tata Motors 4.91% to Rs156.10.

Meanwhile, Asian markets benefited from a rebound in oil prices as Israel continued to clash with Hamas. Japan’s Nikkei ended 1.28% but Hong Kong’s Hang Seng index ended 0.9% lower, its biggest yearly drop according to Reuters records that date back to 1983.