Sensex regains 10k mark in early trade
Sparked by RBI's announcement of fresh set of measures to infuse more liquidity into the market, the Sensex regained 10,000-pts mark and surged by 544 pts on heavy buying by funds as well as retailers.business Updated: Nov 03, 2008 12:15 IST
The benchmark Sensex on Monday regained 10,000-points mark and surged by 544 points in early trade on heavy buying by funds as well as retailers, sparked by RBI's announcement of fresh set of measures to infuse more liquidity into the financial system.
The 30-share index, which gained almost 1,200 points in the past three sessions, shot up by another 544.00 points or 5.56 per cent at 10,332.06 on renewed buying in the stocks of banking, capital goods, metals and oil and gas sectors.
The wide-based National Stock Exchange's Nifty also rose by 158.80 points, or 5.43 per cent, at 3,044.40 points.
Marketmen said appreciating Indian rupee, which strengthened by almost one per cent to 48.99 a dollar on Monday, also impacted the trading sentiments.
The sentiments turned bullish after the Reserve Bank slashed CRR, the amount which banks have to park with it, by one per cent to 5.5 per cent, while the repo rate, at which the central bank lends to banks, was cut by 0.5 per cent to 7.5 per cent.
Stock analysts said rate cut will improve much needed liquidity in the financial sector, triggering all-round buying by funds.
They said banking sector stocks were leading the rally, contributing major support to the Sensex. Banking sector stocks shot up by 375.33 points, or 7.49 per cent.
Among banking stocks, ICICI Bank surged by 9.23 per cent at Rs 436.20, State Bank of India rose by 7.80 per cent at Rs 1,196.05.
Besides, ACC, Bharti Airtel, BHEL, DLF Ltd, HDFC Bank, HDFC Ltd, Infosys Technologies, Satyam Computers, Reliance Industries, Reliance Infra, RCom and Ranbaxy also moved up.
Meanwhile, among other Asian equity markets, Hong Kong's Hang Seng Index was up by 4.8 per cent in early trade on Monday.