Sensex perks up 162 points after after RBI announces rate cuts | business | Hindustan Times
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Sensex perks up 162 points after after RBI announces rate cuts

business Updated: Sep 29, 2015 17:46 IST

Indian markets opened sharply lower on Tuesday, September 29, 2015, ahead of the announcement of bi-monthly monetary policy for this fiscal. (HT File Photo)

Recovering from early losses, the benchmark BSE Sensex surged over 750 points from the session’s low after the RBI surprised with a bigger-than-expected rate cut but late selling in healthcare and metal stocks trimmed gains and the index ended 161.82 points higher at 25,778.66.

Besides, the NSE Nifty recaptured the 7,800-mark by rising 47.60 points or 0.61% to close at 7,843.30.

Rupee strengthening against the dollar during the day also helped. Shares of metal, healthcare, oil & gas and consumer durables, however, ended on the losing side.

In a big boost to the economy and borrowers, Reserve Bank on Tuesday announced a 0.5% cut in repo rates to 6.75%.

The apex bank also hiked limits for FPI investment in government securities to 5% of the outstanding stock by March 2018, a move that will bring in an additional Rs 1.2 lakh crore in G-sec.

The uptick was tempered by RBI’s pessimistic stance on economy as it revised its real GDP forecast for 2015-16 to 7.4% from earlier expectation of 7.6%.

The BSE Sensex after taking off on a negative note slipped further to a low of 25,287.33. However, it rebounded on RBI’s announcement and regained the 26,000-mark to hit a high of 26,054.37.

Profit-booking towards the fag-end pulled the index down from day’s high and it settle 161.82 points or 0.63% higher at 25,778.66.

Out of the 30-share Sensex pack, 14 stocks ended higher. Prominent gainers from the index included HDFC, Maruti Suzuki, M&M, Coal India, L&T, HDFC Bank, Tata Motors, Infosys, BHEL, SBI, RIL, ONGC, ITC and ICICI Bank.

Sectorwise, BSE realty index gained the most by surging 1.99%, followed by banking 0.90%, auto 0.76%, capital goods 0.65%, power 0.52%, IT 0.38% and PSU 0.31%.

In line with overall trends, mid-cap index rose 0.42% but small-cap ended 0.11% lower.

Global cues were largely negative on global growth worries amid a slowdown in China and uncertainty over the US Federal Reserve’s actions.

Meanwhile, foreign investors sold shares worth Rs 650 crore on Monday as per provisional data.