The market surged higher in morning trade to hit highest level in one week. The barometer index, Niftywas inching towards 5250 mark. IT stocks were helped by weaker rupee and hopes for more stimulus from the US Fed after data showed cooling US growth.
Banking stocks extended rally on buzz that Cabinet has cleared the much awaited Banking Law (Amendment) Bill.
Infosys gains 1.5%. Valuations also playing a role, as shares still down about 12% from the day before it disappointed investors with its revenue forecasts.
The Sensex was up 113.47 points or 0.66% at 17300.81, and the Nifty was up 35.35 points or 0.68% at 5244.35. About 1353 shares advanced, 864 shares declined, and 1202 shares remain unchanged.
In the largecap space, top gainers on the Nifty were DLF, Reliance Infra, TCS, IDFC and PNB. Maruti Suzuki, Dr Reddys Labs, Mahindra and Mahindra and Asian Paints were down 1-2%.
cuts base rate by 25 bps to 10.5 pct, effective May 1. The bank also cut its benchmark prime lending rate by 25 bps to 14.75 percent and cuts deposit rates by 10-50 bps, effective May 1.
The rupee gains 52.44/45 to the dollar vs 52.54/55 close on Friday, tracking gains in Asian peers. Dealers say month-end oil demand kicking in, tips 52.30-52.60 range for session for USD/INR. Dollar is weak in the wake of disappointing first-quarter US economic growth.
Gold at 2-week High
Gold held near a 2-week high on Monday on prospects of more safe haven buying, with the dollar under pressure from weaker-than-expected U.S. economic data and speculation the Federal Reserve could ease policy further to boost growth.
Data To Watch
India due to report trade data on Tuesday, when markets are closed. Data comes at a time of deepening concerns about India's negative current account balance. Credit Agricole expects exports to have fallen 5.7% on year in March, from 4.30% gain in the previous month.