Rupee hits 5-week high, Sensex surges 376 pts on RBI boost

The 30-share index rose by 265.94 points, or 1.03 per cent, at 26,044.60 with all sectoral indices, led by metal, realty and banking, trading higher by up to 2.12 per cent.

The rupee gained for the third straight trading session to close at a 5-week high of 65.58 against the dollar on Wednesday and the benchmark Sensex closed at a week high of 26,154 as investor sentiments rose following Reserve Bank of India’s decision to cut the repo rate by an unexpected 50 basis points.

RBI’s decision on Tuesday, lifted the investor sentiments and the markets rose for the second straight trading session thereby providing support to the domestic currency. While the Sensex at Bombay Stock Exchange rose 1.5 per cent during the day to close at 26,154, the broader Nifty at the National Stock Exchange gained 1.35 per cent and closed the day at 7,948.9. The Sensex has gained 538 points or 2.1 per cent over the last two trading sessions.

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The index has gathered 538 points in the last two days.

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The NSE Nifty index regained the 7,900-mark by soaring 105.60 points or 1.35 per cent to close at 7,948.90.

Besides rate cut, a rebound in Asian and European markets, as investors snapped up bargain shares, after recent heavy falls that were sparked by global growth worries, too buoyed trading sentiments. Rupee strengthening against the dollar during the day also helped.