Sensex climbs 217 points as RBI keeps policy rates unchanged
Stock markets moved up today, with the BSE benchmark Sensex closing over 217 points higher, after the RBI kept short term lending and borrowing rates unchanged.business Updated: Dec 16, 2010 16:33 IST
Stock markets moved up on Thursday, with the BSE benchmark Sensex closing over 217 points higher, after the RBI kept short term lending and borrowing rates unchanged.
The Bombay Stock Exchange's 30-share barometer, which fell by 151.42 points in the previous session, ended the day higher by 217.08 points, or 1.10 %, at 19,864.85. The Sensex shuttled between a low of 19,554.35 and a high of 19,897.22 points.
Likewise, the wide-based 50-share Nifty Index of the National Stock Exchange ended 56.45 points, or 0.96 % up at 5,948.75 after moving between 5,855.05 and 5,956.15.
Analysts said it was a positive reaction by stock markets to the Reserve Bank move to keep key short-term lending and borrowing rates (Repo and Reverse Repo) unchanged at 6.25 % and 5.25 %, as well as cash reserve ratio (CRR)) at 6 %.
In 30-BSE index components, 21 stocks closed in the positive zone and other nine remained lower. While stocks in technology, banking, metals, oil and gas and realty sectors were back in good demand, capital goods and auto segment stocks remained under pressure on profit-booking.
Brokers said the RBI's move to keep key rates unchanged, was in line with the market expectations, which buoyed the trading sentiments, triggering widespread buying by funds and retail investors.
Further, reports of higher advance tax for the October-December period paid by some companies added to the positive factor, they said.
The BSE IT sector index gained the most by rising 2.84 % to 6,580.53 with Infosys Technologies, TCS and Wipro recording sizable gains on the back of strengthening US dollar.
The interest sensitive, bankex rose by 1.56 % to 12,921.14 as country's largest lender, State Bank of India rose by 2.44 % to Rs 2,761.85, ICICI Bank by 2.43% to Rs 1,104.30 while HDFC Bank by 1.80 % to Rs 2200.35.
The realty sector index also ended 0.89 % higher at 2,769.28.
DLF Ltd, the biggest developer, gained 1.56 % to Rs 282.35, while the second biggest developer Unitech Ltd by 1.21 % to Rs 62.65.
The Metal sector index rose by 1.33 % to 16,622.24 with country's largest alloy makers, Tata Steel rising by 2.54 % to Rs 658.85 and Sterlite Industries up by 0.67% to 172.20.
The oil and gas sector index closed 0.22 % higher at 10,671.58 as the Sensex heaviest Reliance Industries moved up by 0.37 % to Rs 1,055.80 and ONGC gained 0.55% to Rs 1,329.10.
The stock markets will remain close on Friday on account of "muharram".