Markets have extended the rally to start the week on a very positive note. The Sensex has gained more than 250 points during the opening. However it has cooled off to 18647, up by 183 points or 1% high. The Nifty has rose by 57 points to trade at 5633, up by 1%.
The rally has come in the backdrop of the recent measures by the Government to give a booster to the economy, including the fuel price hikes, allowing the FDI in certain sectors and disinvestment in some of the public companies.
Added to this, the RBI is expected to come out with its policies, after its monetary policy review slated to happen today. Banking stocks have all rallied in anticipation of the measures from RBI.