The Sensex and the Nifty ended the day sharply lower as Brent Crude Oil Prices fell, signalling renewed hopes of an inflation drop and interest rate cuts.
The Sensex ended the day at another record closing of 28,693 points, while the Nifty gained 94 points in trade. Leading the set of gainers were the oil marketing stocks like BPCL and HPCL which saw a surge following a sharp drop in crude prices.
Banking stocks, particularly the PSU banking majors saw a huge surge with stocks like Bank of Baroda, Punjab National Bank, State Bank of India, Syndicate Bank, Union Bank, Andhra Bank and Oriental Bank of Commerce seeing a huge spike. The rally was largely on hopes that the RBI would cut interest rates going forward.
Mid cap stocks also saw buying interest with Power Finance and Tata Chemicals leading the set of gainers.
Realty stocks also jumped on hopes that the Reserve Bank of India would cut interest rates going forward. Stocks like Godrej and Unitech gained ground.
Shares in 8K Miles gained 5 per cent after reports that the firm acquired SERJ Solutions.
Meanwhile, markets in Asia gained ground, while most of Europe was trading with marginal losses.