Mumbai: The equity markets extended their rally for the second consecutive day amidst hopes that the RBI would cut interest rate on Tuesday. The Sensex ended the day at 25,399.65, up 130.01 points or 0.51 per cent while the Nifty closed the day at 7,758.80, gaining 45.75 points or 0.59 per cent. According to the provisional data released by the stock exchanges, FPIs bought shares worth Rs 236.82 crore.
Since the markets had already priced in a 25 basis point cut in interest rate, experts said the market would need additional stimulus to sustain its winning momentum. “In spite of sharp increase in risk-reward ratio, the market continues to trade at the upper-end of the trend-line due to a strong expectation about RBI cutting interest rates. To maintain the current rally, we will need a 50 basis point cut with a positive commentary,” said Vinod Nair, head of research, Geojit BNP Paribas Financial Services.
