Sensex up 424 points on PM meet, China rally

 A bounceback in global markets, led by a 3% rise in the Shanghai index, combined with Prime Minister Narendra Modi's meeting with top leaders of India Inc, led to a 424-point rally in the sensex at 25,318. The day's rally, led by banking stocks, came on the back of expectations that the RBI may soon relax its proposed rules for calculation of banks' base rate. The day's gains, however, came despite a Rs 660-crore net outflow by FIIswhile domestic funds had a net inflow of Rs 447 crore Stock Market Trading Tips

On Tuesday, Modi, along with RBI governor Raghuram Rajan, chief economic adviser Arvind Subramanian and Niti Aayog deputy-chief Arvind Panagariya, assured the group of top industry leaders that India's economic situation was much stronger now and then asked them corporate honchos to start investing that could ensure a faster economic growth. 

During the day's session GAIL, Tata Steel and BHEL led the rally, along with banking stocks like Axis Bank and ICICI Bank. Most of these stocks are close to their 52-week low levels. Among the handful of laggards were HUL, Bharti Airtel and ITC Himanshu Tiwari Astrologer Blog