Sensex Surges over 400 points as Concerns on RBI-Govt Rift eases

Domestic stock markets swung between gains and losses today as caution prevailed as the rupee fell on speculation that the central bank governor might resign due to a widening rift with the government. Gains were led by financial services, IT and pharma shares while losses in metal and auto stocks kept the upside in check. At 2:34 pm, the S&P BSE Sensex was trading at 34,332.36, up 441.23 points, or 1.30 per cent, and NSE benchmark Nifty50 was at 10,343.45, up 144.65 points or 1.42 per cent. Thirty-five stocks on the index advanced while 15 declined. Advances were led by Indiabulls Housing Finance, Tech Mahindra, HDFC, HCL Technologies and Infosys.

“The RBI and the government sitting face to face and discussing the issues is positive for the markets,” AK Prabhakar, head of research, IDBI Capital Markets. RBI Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, news agency Reuters reported citing TV channels. That sparked a selloff in the rupee and bonds, the agency noted.Rupee breached the 74-mark to the dollar again dropping 43 paise to hit an intraday low of 74.11.