Credit policy boosts market
The financial market surges at mid-session after RBI left all key rates unchanged to sustain economic growth.business Updated: Apr 24, 2007 14:17 IST
The entire spectrum of financial market surged at mid-session after RBI left all key rates unchanged to sustain economic growth while containing inflation.
While the Bombay Stock Exchange benchmark Sensex surged by nearly 262 points led by banking stocks on expectations that unchanged banking rates might boost lending business, the rupee appreciated by over 51 paise against the $ at Rs 41.17.
The Sensex rose by 261.73 points at 14,190.06 and the banking index comprising 16 banking stock by 288.83 points, or 4.2 per cent, to 7,170.67. The second wide-based National Stock Exchange index Nifty 73.55 points at 4,158.65.
State Bank of India, the biggest lender surged Rs 65, or 6.1 per cent, to Rs 1,125 while ICICI Bank, the largest private bank, jumped Rs 38.20, or 4.2 per cent to Rs 955.
HDFC Bank, the third-biggest private bank, climbed Rs 29.60, or 3 per cent, to Rs 1,017.
Shares in construction business also picked up on speculation that home purchases will be spurred by increased lending.
Indiabulls Real Estate surged Rs 20.65, or 6.8 per cent, to Rs 324.70. Unitech added Rs 13.10, or 3.3 per cent, to Rs 412.25. Parsvnath Developers rose Rs 12.20, or 4.1 per cent, to Rs 309.05.