Mumbai, Jan 29: The 30 scrip BSE Sensex rose sharply by 194 points to 18,346.49 points in opening session following strong global cues coupled with expectation of 25 basis points repo rate cut by Reserve Bank of India (RBI).
The market surged in opening trade following strong global cues against the overnight close of 18,152.78 points. Asian markets, which opened before Indian market, were trading firm today, brokers said adding that 28 of the 30 scrips of the BSE barometer advanced. The market breadth was strong.
It further went on to touch a high of 18,491.06 in the early trade, gaining 346.49 points from the previous day's close.
The broader CNX S&P Nifty index of National Stock Exchange (NSE) also went up by 106.15 points, or 1.97 per cent, to 5,380.35 points from its last close of 5274.10 points. However, it resumed high by four points at 5279.55 points. The Index recorded the day's high and low at 5391.60 and 5268.30 points respectively.
India's largest oil exploration company in terms of market capitalisation, Oil and Natural Gas Corporation surged by 4.22 per cent to Rs 1,043. It was the top gainer from Sensex pack.
ITC was also up by 3.97 per cent to Rs 204.15, followed by Infosys Technologies by 3.59 per cent to Rs 1,498 and Grasim by 3.54 per cent to Rs 3,052 were the other gainers from Sensex pack.
India's largest private sector firm by market capitalisation and oil refiner, Reliance Industries rose by 1.48 per cent to Rs 2,601.85. As many as 5,7206 shares changed hands on the counter in early trade on BSE.
However, Bajaj Auto was down by 1.20 per cent to Rs 2,429.90 and ICICI Bank also eased by 0.32 per cent to Rs 1,269.65, and were the losers from Sensex pack.
State Bank of India rose by 0.42 per cent to Rs 2,317.50 and HDFC Bank hiked by 0.95 per cent to Rs 1,600.05, rose ahead of RBI's quarterly monetary policy review this morning. As per media reports, a sharp cut in US interest rates last week has increased the possibility of a 25 basis points repo rate cut by RBI.
Among the side counters, Ambika Cotton Mills hiked by 13.34 per cent to Rs 141 followed by Ador Fontech by 10.70 per cent to Rs 119, Asian Hotels by 9.56 per cent to Rs 681, SEL manufacturing by 9.50 per cent to Rs 194.25, and Shree Renuka Sugars by 8.77 per cent to Rs 1027.90.
The market may see high volatility ahead of the expiry of January 2008 derivative contracts on January 31.
Banking, auto, financial stocks would be likely to rally further on expectation of cut in interest rate by RBI on third quarter reviews this noon.
Interest rate sensitive auto, banking and realty shares may see action as the Reserve Bank of India (RBI) announces quarterly review of the monetary policy today.