A crucial meet of the Reserve Bank's central board is underway amid a rift between the central bank and the government over future course of policies. Expectations of a positive outcome boosted market mood after the meeting began.
Illustration: Uttam Ghosh/Rediff.com
The BSE benchmark Sensex rallied over 300 points on Monday to end at over a six-week high of 35,774.88 as investors widened their portfolios ahead of the RBI's board meet outcome amid foreign fund inflows.
Also, positive cues from other Asian markets and a firm opening in European shares buoyed investor sentiment.
A crucial meet of the Reserve Bank's central board is underway amid a rift between the central bank and the government over future course of policies.
The finance ministry nominees and some independent directors were expected to take on Patel and his team over issues ranging from MSME credit to the central bank's reserves, though both sides are in favour of reaching a common ground.
Expectations of a positive outcome boosted market mood after the meeting began.
The Sensex started off on a high note at 35,647.62 and continued its upward march to hit a high of 35,818.65 as buying activity gathered momentum.
It finally settled 317.72 points, or 0.90 per cent, higher at 35,774.88.
This is the benchmark's highest closing since October 3 when it had closed at 35,975.63. The barometer had gained 315.17 points in the previous two sessions.
Also, the broader NSE Nifty raced past the 10,750-mark to touch a high of 10,774.70 before settling at 10,763.40 points, showing a rise of 81.20 points, or 0.76 per cent.
Top gainers include Yes Bank, ITC, Tata Motors, IndusInd Bank, Reliance Industries and Vedanta, rising up to 7.19 per cent.
T losers include ONGC, ICICI Bank, SBI and Asian Paints, falling up to 1.37 per cent.
Meanwhile, foreign institutional investors (FIIs) bought shares worth a net of Rs 844.82 crore on Friday, while domestic institutional investors (DIIs) sold shares worth a net of Rs 372.24 crore, provisional data showed.