Sensex surges 209 points despite increased WPI
Despite increase in Wholesale Price Index (WPI) inflation numbers for the month for February 2013, market sentiment is upbeat sensing a rate cut (of at least 25 bps) by RBI’S forthcoming monetary policy announcement next week.
The WPI inflation numbers were recorded at 6.84 per cent against 6.62 per cent in January.
Today, the 30 share BSE Index or Sensex ended at 209 points up at 19,571.55.It received a high of about 1.08 percent. Similarly, the 50 share NSE index or Nifty closed at 5,910 points, up by 1.02 percent and 59.45 points.
Almost all the BSE sectoral indices performed well except Consumer Durables that was down by 1.45 percent.
The major gainers were Realty index that was up by 2.18 per cent and closely followed by Banking index that gained by 2.08 per cent.
Capital Goods appreciated by 1.34 percent and Oil and Gas achieved 1.26 percent rise.
However, it is still to be seen if RBI responds in the positive fashion. Both CPI and WPI numbers were satisfactory and therefore a rate cut is anticipated by all the market experts. In case, RBI decides otherwise, the already volatile market could tumble further.