Markets jump on rate cuts hopes, strong European cues

Markets rallied and recouped most of Wednesday's losses as hopes grew that the Reserve Bank of India would cut rates on March 19 and on robust gains across Europe. The Sensex ended the day higher by 209 points, while the Nifty ended with gains of 31 points.

Today, the shares of these private sector banks were rocking despite allegations. ICICI Bank closed at 2.29 per cent at Rs 1110. Axis Bank was up 0.50 per cent and HDFC Bank closed above 2 per cent.

Investors do not seem to have taken the allegations seriously, even if they are true.

The Wholesale Price Index inflation for the month of Feb 2013 has come in at 6.84 per cent, higher then consensus estimates, increasing the challenge for the RBI when it meets on March 19 to decide on interest rate cuts.

Among sectoral indices all the sectors were trading in positive terrain except Consumer Durables which was down by 1.54%.

Top gainers in today's trade were State bank of India, Maruti, Ranbaxy, Tata Power and Asian Paints. Losers in today's trade were Bajaj Auto, Gail, Bharti Airtel, Sun Pharma and Hero Motocorp.

Meanwhile, Asian markets closed on a positive note. The UK's FTSE, the French CAC and the Spanish Indices were trading higher.

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