Sensex surges 464 pts to end above 24,000 on strong global cues; SBI vaults 11%

The new profound buoyancy in domestic stocks continued for the second straight session, as benchmark Sensex zoomed past the crucial 24,000-mark and added 464 points more or nearly 2 percent higher to end the day at 24,242.98.  In addition to yesterday’s 777-points rally, the Sensex has surged over 1,200 points in just two sessions, buoyed by renewed hopes that RBI may soon undertake a rate-cut after the government in the recently-concluded budget restrained from increasing the fiscal deficit target to aid growth, and instead maintained that the deficit would be brought down to 3.5 percent of GDP in FY17. With expectations a rate cut being built up in the markets in last few sessions, banking stocks were the star attraction as investors covered their shorts on hopes further easing of rates would improve credit demand. The broader 50-stock CNX Nifty also ended firm at 7,368.85, up 146.55 points, or 2 percent higher. [caption id=“attachment_2652806” align=“alignleft” width=“380”]  Reuters[/caption] Market breadth ended strong with 1,970 stocks advancing against 693 declines on BSE. Further, the upbeat mood in domestic markets was also marked up stupendous rally in other Asian and European indices. Among other Asian gauges, Japan’s Nikkei rose 4.1 percent, while Chinese indices, Shanghai Composite jumped 4.3 percent and Hang Seng gained 3.1 percent at close. Key European indices, too, were up, albeit marginally. Favourable movement in local currency also aided sentiment, with rupee appreciating by another 22 paise to trade at 67.63 against the dollar. In last two sessions, the rupee appreciated by over 70 paise. Banking scrips led the pack among Sensex constituents. Shares of SBI shot up 11.5 percent to Rs 180.85, ICICI Bank advanced 7.4 percent to Rs 220.20, Axis Bank rose 3.9 percent to Rs 407.15, HDFC gained nearly 3 percent to Rs 1,100.25 and HDFC Bank was up 2.3 percent at Rs 1,008.05. Among other gainers, Adani Ports surged nearly 6 percent to Rs 218.80, HeroMoto Corp jumped 5.3 percent to Rs 2,807.75, BHEL moved up 4.9 percent to Rs 97.25, Tata Steel gained 4 percent to Rs 267.15 and NTPC was up 3.4 percent at Rs 126.70. However, select Sensex scrips ended losers, with M&M leading the pack, tumbling 5.3 percent to Rs 1,199.05. Others such as Coal India declined nearly 2 percent to Rs 311.45 and Sun Pharma eased 1.7 percent to Rs 852.30. ITC, which was the top Sensex gainer on Tuesday and rose 10 percent, failed to ride the positive wave and fell 1.6 percent to Rs 319.90.