Sensex surges by 387 points

The BSE benchmark Sensex on Tuesday rose by nearly 390 points,its biggest gain in seven months,to close at 18,744.93 on heavy buying by FIIs on hopes of a rate cut by the RBI and expectations of a lower deficit on account of falling prices of crude oil and gold.

The 30-share Sensex opened at 18,356.32 and fell to the days low point of 18,325.73 on initial selling tracking overnight losses in US markets. However,fresh fund infusion by FIIs on talks of lower fiscal deficit and a possible rate cut by RBI on May 3 after lower-than-expected inflation numbers helped the sentiment recover,traders said.

Led by banks,auto,capital goods and power,the Sensex surged to days high of 18,771.33 and finally settled at 18,744.93 a gain of 387.13 points or 2.11 per cent,the biggest jump since September 2012. The 50-share Nifty at the NSE also ended higher by 120.55 points or 2.16 per cent to finish at 5,688.95.