Biggest 1-Day Gain In 7-Yr:sensex Up777 Pts, Nifty Above7200 Kottesamu

[kiladi bullodu]

It was a day of bulls that helped market gain more than 3 percent on hopes of rate cut and supportive global cues Tuesday. Equity benchmarks posted biggest single-day gain since May 18, 2009 (when the Sensex gained 2,110 points on elections win by UPA government). The 30-share BSE Sensex surged 777.35 points or 3.38 percent to 23779.35 and the 50-share NSE Nifty rallied 235.25 points or 3.37 percent to 7222.30. Experts are hopeful of rate cut as the Union Budget provided sufficient space. They were not expecting 3 percent rally in the market as Budget was not so great. Ridham Desai of Morgan Stanley believes there is a room for rate cut for RBI now but does not expect them to advance it by a month. The cut could come about in the April policy, he feels. According to him, the Budget chose not to take risks and retained its focus on fiscal prudence because fiscal expansion could have hurt India in case things turn for the worst in the world. It may be a good time to enter the equity market with a 2-3 year view, says Nirmal Jain of IIFL, adding the Nifty is unlikely to fall below 6650-6700 in near-term. Meanwhile, the rupee posted biggest single-day gains in almost 6 months, gaining past 68 a dollar following rally in equity markets. The currency closed at 67.86 a dollar, up 57 paise compared to 68.43 on Monday.