Sensex up 24 points on RBI policy stance, GDP cheer | business | Hindustan Times
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Sensex up 24 points on RBI policy stance, GDP cheer

business Updated: Dec 01, 2015 17:01 IST

Extending gains for the fourth straight day, the benchmark BSE Sensex rose over 91 points in early trade Tuesday.(File Photo)

Market benchmark Sensex on Tuesday rose for the fourth straight session by gaining about 24 points to end at over a three-week high of 26,169.41 after RBI adopted an accommodative stance while leaving rates unchanged at its fifth bi-monthly policy review.

Government data showed India’s GDP growth quickened to 7.4% in the July-September quarter, from 7% in the previous one, which propped up sentiment.

The rupee strengthening by 23 paise to 66.44 (intra-day) against the dollar during the day also helped.

A higher closing in Asia after investors took positives from Chinese economic data that showed manufacturing contracted to the lowest in three years and a better opening in Europe influenced mood.

The BSE Sensex took off on a positive note and advanced further before settling higher by 23.74 points, or 0.09% at 26,169.41, a level last seen November 6.

Higher levels could not be sustained as participants locked in gains. The gauge had gained 369.92 points in the previous three sessions.

The NSE Nifty also moved up 19.65 points, or 0.25%, to 7,954.90 after shuttling between 7,972.15 and 7,934.15.

Stocks of metal companies led by Vedanta Ltd, Tata Steel and Hindalco were back in limelight and gained up to 4.66% after global metal prices climbed.

RBI governor Raghuram Rajan on Tuesday kept the key policy rates steady, but affirmed the central bank’s commitment to ease rates as and when room is available, saying inflation which guides its stance is likely to come in better than expected.

RBI left the short-term lending rate, or repo rate, unchanged at 6.75%, and the cash reserve ratio static at 4%.

The central bank also retained the GDP projection unchanged at 7.4% with a moderate downward bias.

Out of the 30-share Sensex pack, 16 ended higher. Prominent gainers from the index included Coal India, Dr Reddy’s, Hind Unilever, Wipro and NTPC. Sector-wise, the BSE metal index gained the most by surging 3.18%, followed by healthcare 1.07%, FMCG 1.07% and PSU 0.97%.

In step with the trend, the mid-cap index rose 0.78% and small-cap 0.46%. Meanwhile, foreign investors sold shares worth Rs 1,043.84 crore on Monday, showed provisional data.