Spurred by a 0.5% cut in cash reserve ratio (CRR), the benchmark Sensex of the Bombay Shock Exchange (BSE) on Tuesday rose 244 points, or 1.5%, to close at 16,996. The index rose nearly 299 points intra-day.
This is the first time since December 7 that the Sensex crossed 17,000 intra-day.
The Nifty also regained the 5,100 level, adding 81 points, and closed at 5,127.
“The CRR cut had a positive impact on the sentiment,” said Nirmal Jain, MD, IndiaInfoline. “To sustain the rally though, markets will look forward to reforms from the government.”
The rupee also rose to an intra-day high of R49.95, before closing at Rs 50.09 to a dollar.
“The CRR cut had a sentimental impact,” said Rajat Monga, group president, financial markets and CFO, Yes Bank.