Rebounding from two-month lows, the Sensex surged 351 points to end at 19,177.93, still 1.5 percent loss to the week, as slowing wholesale inflation and strengthening rupee rekindled hopes of rate cut by RBI next Monday.
Breaking the three-day losing streak, investors were richer by over Rs 90,000 crore as 13 sectoral indices finished higher with over 1,400 stocks logging gains. Finance Minister P Chidambaram's comment that government would announce steps soon to boost investment and growth, also supported markets.
Sensex opened the day higher tracking global markets and gathered momentum to a high of 19,213.10 as rate cut hopes revived after inflation fell to over three-and-half-year low to 4.7 per cent in May. It ended at 19,177.93, a gain of 350.77 points or 1.86 percent. The index had lost 613.91 points in past three days.
Lower inflation on account of declining prices of manufactured items and recent weak IIP data boosted hopes of monetary action by RBI on Monday, traders said. The larger 50-share Nifty rose 109.30 points, or 1.92 percent, to finish at 5,808.40.
