BSE Sensex rises more than 400 points,Nifty gains 125 points on rate cut hopes

Nifty April futures gained 2 on growing rate cut hopes after sharp declines in crude and gold prices.

Nifty April futures gained 2 on growing rate cut hopes after sharp declines in crude and gold prices,dealers said.

The 50-share Nifty also gained 1.87 percent,trading above its 200-day moving average for the first time since April 4.

Slowing wholesale price inflation and sharp declines in commodity prices are expected to help narrow India8217;s current account deficit,and also spur the central bank to cut interest rates at its policy review on May 3,dealers said.

BSE Sensex today rose by over 400 points as stocks of oil and gas,power,banking and PSUs sectors surged on increased buying by funds and retailers,fuelled by lower-than-expected wholesale inflation and falling global crude prices.

The 30-share barometer gained 171.38 points,or 0.93 per cent,to 18,529.18 in opening trade. The index had gained 115.24 points in the previous session.

Similarly,the wide-based National Stock Exchange index NSE Nifty regained 5,600 points by rising 46.95 points,or 0.84 per cent,to 5,615.35.

Brokers said fresh buying by funds and retailers on hopes of a rate cut by RBI after inflation based on the Wholesale Price Index WPI fell to over three-year low of 5.96 per cent in March and falling global crude prices helped the trading sentiment to improve.

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They said,however,a weakening trend in the Asian region following overnight losses on the US markets,restricted the gains on the domestic bourses here.

Stocks in oil and gas sector extended yesterday8217;s gains after crude prices in the global market continued to fall.

Shares of BPCL gained 1.60 per cent,HPCL rose by 1.62 per cent,ONGC by 1.36 per cent,RIL by 0.47 per cent and IOC by 2.02 per cent.

However,stocks of gold finance and jeweller companies remained under pressure on rising risk of default due to persistent fall in the precious metal prices.

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Mannappuram Finance fell 9.77 per cent,Muthoot Finance by 8.15 per cent,P C Jewellers by 1.62 per cent and Gitanjali Gems by 2.08 per cent.

Meanwhile in Asia,Hong Kong8217;s Hang Seng index fell by 1.07 per cent,while Japan8217;s Nikkei shed 1.47 per cent in the early trade. The US Dow Jones Industrial Average ended 1.79 per cent lower in yesterday8217;s trade.

Indian stocks to watch 8211; April 16

Reuters: GLOBAL MARKETS ROUNDUP

Nifty futures on the Singapore Exchange fell 0.43 percent and the MSCI-Asia Pacific index excluding Japan was down 0.94 percent.

The yen firmed against the dollar and the euro on Tuesday while commodities from gold to oil extended their sharp declines after investors dumped risk assets overnight,worried over slowing growth in China and the U.S. took hold.

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U.S. stocks posted their worst day since Nov. 7 on Monday as big declines in the price of gold,oil and other commodities fed a broad selloff in equities.

FACTORS TO WATCH

Reliance Industries to report March quarter earnings.

State Bank of India press conference on closing of 1 billion bond issue.

Finance Minister P. Chidambaram visits U.S.,Canada from April 15-19.

INDIAN STOCKS TO WATCH

India8217;s IOC cuts petrol prices from Tuesday.

India allows tariff hike at Tata Power plant.

Government to allow telecom firms to share spectrum.

India8217;s latest tax target: companies selling below cost.

Kazakhstan may step in to replace ONGC as buyer of Conoco8217;s 270 bn rupees stake .

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GTL Infra seeks 275 mln dues from Aircel over tower deal.