Sensex closes 195 pts up on rate cut hopes; SBI, ONGC up 2%


12/06/2012 23:49 AST  Money Control

The 30-share BSE Sensex gained as much as 226 points on Tuesday on expectations of further monetary easing by the Reserve Bank of India after a flat industrial output in April.

The BSE benchmark rose 194.79 points or 1.17%, to close at 16,862.80, supported by 25 components. Meanwhile, the NSE benchmark ended above the 5,100 for the first time since May 7, 2012 that moved up 61.80 points or 1.22% to 5,115.90.

After looking at just 0.1% growth in industrial output for April, market experts and bankers expect 50 basis points cut in repo rate or 50-100 basis points cut in cash reserve ratio by RBI in its mid-quarter policy review on June 18.

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