A day after suffering losses following the presentation of the Union Budget, the Sensex rebounded by over 436 points on Tuesday, bolstered by renewed hopes of a rate cut by the Reserve Bank amid positive Asian cues.With the Budget out of the way, the focus now shifts to RBI Governor Raghuram Rajan’s monetary policy action to revive investment and growth.The 30-share index rebounded by 436.23 points, or 1.89 per cent, to 23,438.23 on heavy buying.

The gauge had lost 152.30 in a highly volatile trade on Monday, mainly hit by a proposal for a higher dividend distribution tax on those earning more and a one on raising securities transaction tax on options trading.Also, the Nifty reclaimed the crucial 7,100-mark by surging 134 points, or 1.91 per cent, to 7,121.05.All sectoral indices led by FMCG, banking, IT, realty, technology and capital goods traded in the positive territory, rising by up to 3.39 per cent.

While foreign institutional investors took to selling, domestic financial institutions stuck to buying, helping the benchmark indices recover.Hong Kong’s Hang Seng rose by 0.54 per cent while Shanghai Composite jumped 0.40 per cent in early trade. Japan’s Nikkei shed 0.69 per cent.The U.S. Dow Jones Industrial Average ended 0.74 per cent down in Monday’s trade.

Source : thehindu.com

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