Sensex tops 27k after 7 months on RBI’s accommodative stance
Mumbai : RBI’s policy stance to stay accommodative gave market a shot in the arm today as the Sensex wrested back control of the crucial 27,000-mark by surging more than 232 points to close at an over 7-month high.
Banking and realty stocks fired on all cylinders while global cues were largely positive.
The rupee firmed up 25 paise to 66.72 (intra-day) against the dollar, which kept domestic equities in a good shape.
In the second bi-monthly monetary policy meet of this fiscal, RBI kept the repo rate unchanged at 6.50 per cent and the cash reserve requirement at 4 per cent.
Governor Raghuram Rajan cited higher upside risks to the inflation trajectory behind the move, but signalled that the central bank could cut rate provided data are supportive.
Right from the word go, the BSE Sensex was up and running as it advanced to hit the day’s high of 27,082.63 after the market gave Reserve Bank of India’s accommodative stance a thumbs-up.
The index finally settled higher by 232.22 points, or 0.87 per cent, at 27,009.67, a level last seen on October 28 last year.
The NSE Nifty after shuttling between 8,294.95 and 8,216.40 ended at 8,266.45, up 65.40 points, or 0.80 per cent.
The central bank also retained India’s growth projection at 7.6 per cent for 2016-17, refering to corporate profits and a surge in consumption.
The state-run SBI took the cake by surging 5.4 per cent, followed by ICICI Bank 4.31 per cent.
Other big movers were ITC, Sun Pharma, Hind Unilever, Tata Steel, L&T, Lupin, BHEL, ONGC and Adani Ports.
Bucking the trend, shares of Infosys, RIL, HDFC, GAIL and Dr Reddy’s fell by up to 0.78 per cent.
Asian and European shares too remained in a positive frame as investors speculated that the US Fed may delay its next rate hike beyond July.
Out of the 30-share Sensex pack, 25 showed up in the green.
The BSE realty index gained the most by climbing 1.70 per cent followed by banking (1.63 per cent), consumer durables (1.57 per cent), FMCG (1.35 per cent), metal (1.30 per cent), capital goods (1.23 per cent), and PSU (1.10 per cent).
In broader markets, the BSE small-cap index surged 0.96 per cent and the mid-cap 0.29 per cent.
Foreign portfolio investors (FPIs) bought shares worth net Rs 28.80 crore yesterday, as per provisional data released by the stock exchanges.
Japan’s Nikkei rose 0.58 per cent while China’s Shanghai index was up 0.07 per cent and Hong Kong’s Hang Seng rose 1.42 per cent. Europe was also higher in its early trade.