Sensex ends above 9000 on rate cut hopes; bank, oil stks lead

26 November 2008

The benchmark indices witnessed smart rally in last one hour of trade, after trading choppy since the beginning of trade. The Sensex closed above 9000 mark and the Nifty shut shop above 2700 level, on account of buying in oil, banking, power, capital goods, metal, and telecom stocks.

The sentiment turned positive on the hope that there may be rate cut by RBI following China, as the China has cut CRR by 100 bps to 16% from 17%. They also lowered lending rates to 5.58% from 6.66%. China's central bank slashed lending rates by most in 11 years.

Markets got helped from the Oil Ministry's statement as well. They said in a conference that the price revision will be considered in due course.

All these news lifted oil and banking stocks higher, which helped the markets in the last one hour of trade to get back into strong territory.

The Sensex shut shop at 9,026.72, jumped 331.19 points or 3.81% over previous close, after hitting an intraday high 9,061.72. The 50-share NSE Nifty rose 3.7% or 98.25 points, to settle at 2752.25.

Reliance Industries, ICICI Bank, HDFC Bank, Bharti Airtel, HDFC, NTPC, ITC, SBI, L&T, Sterlite Industries, ONGC, TCS, Wipro,
Reliance Infrastructure, Infosys Technologies and BHEL were biggest contributors to this rally.