The Telegraph
Thursday , January 16 , 2014
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Data boost for stocks

Mumbai, Jan. 15: The Sensex zoomed 257 points today as inflation eased, reinforcing expectations that the Reserve Bank of India will keep interest rates on hold at its policy review meet on January 28.

The BSE Sensex opened higher at 21091.46 and firmed up to the day’s high of 21302.73. It closed at 21289.49, a gain of 256.61 points, or 1.22 per cent. It was the highest closing for the index since December 9 when it ended at 21326.42.

Global cues also aided sentiments as the World Bank upgraded its outlook for the global economy.

The World Bank projected India’s economy would expand over 6 per cent in 2014-15, while global GDP growth might firm up to 3.2 per cent this year from 2.4 per cent in 2013.

“The equity markets closed higher, tracking strong regional Asian stocks and the Wall Street,” said Jignesh Chaudhary, head of research at Veracity Broking Services.

“Also, there is expectation that with the decrease in inflation, the RBI will not be compelled to raise rates in the near future, which is required to channelise growth,” he said.

The 50-share CNX Nifty on the NSE rose 79.05 points, or 1.27 per cent, to 6320.90.