Sensex rises as monsoon aids rate cut hopes

The BSE Sensex and Nifty rose more than 1.5 per cent on Monday, heading towards their biggest daily gain in about 1-1/2 months as rate sensitive stocks rose on hopes monsoon may lead to an earlier than-expected rate cut by the RBI. The BSE Sensex gained 1.5 per cent, on track to post its biggest daily rise since May 8 while the Nifty rose 1.53 per cent, heading for its biggest daily gain since May 11. The Bank Nifty rose 2.9 per cent, on track towards its biggest daily gain since March 2. ICICI Bank (ICBK.NS) rose 3.2 per cent, while HDFC Bank (HDBK.NS) gained 2.5 per cent. Axis Bank (AXBK.NS) jumped 4.1 per cent, while State Bank of India rose 2.2 per cent. Among auto makers, Tata Motors (TAMO.NS) advanced 2.3 per cent and Maruti Suzuki India (MRTI.NS) was up 1.4 per cent. Real estate developers were top gainers among BSE stock exchange's large cap stocks. Housing Development and Infrastructure Ltd (HDIL.NS) jumped 10 per cent and Unitech (UNTE.NS) rose 9 per cent, according to Reuters.