Budget 2016: Sensex gains over 700 points, rate cut hopes brighten

Mumbai (News24 Bureau): A day after the equity markets suffered heavy losses following the presentation of Union Budget for 2016-17 fiscal year, BSE Sensex bounced back over 700 points on Tuesday amid rate cut hopes by RBI.

The sensitive index saw good buying in sectors led by FMCG, banks and industrials, gaining over 730 points. The 30-share barometer was trading at 23,732.40 at about 2.30 pm, witnessing 3.18 per cent gains.

According to experts, Finance Minister Arun Jaitley's Budget has given Reserve Bank sufficient room to adopt a more accommodative stance and cut key policy rates.

Analysts are eyeing a 50-basis point rate cut this year as they believe Budget gives more preference to economic stability than growth.

The investors' sentiment remained upbeat after Union Budget provided a higher outlay for infrastructure and farming sectors.

With inputs from PTI