Sensex gains 192 points; auto stocks up
A benchmark index of Indian equities markets Tuesday gained 192 points after the Reserve Bank of India (RBI), as expected, left key interest rates unchanged in its third bi-monthly monetary policy review for the 2014-15 fiscal.
Healthy buying was observed in automobile, healthcare, consumer durables, metal and bank scrips. However, capital goods sectors came under sustained selling pressure.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,817.84 points, was trading at 25,915.17 points (at 2.50 p.m.), up 192.01 points or 0.75 percent from the previous day's close at 25,723.16 points.
The Sensex touched a high of 25,831.53 points and a low of 25,654.84 points in intra-day trade.
Markets seemed to have factored in the RBI move, as analysts had predicted that the key interest rates would remain on hold.
The RBI, as expected, left key interest rates unchanged in its third bi-monthly monetary policy review Tuesday.
The repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, has been left unchanged at 8 percent.
The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent.
The Cash Reserve Ratio (CRR) is left unchanged at 4 percent. The marginal standing facility rate and the Bank Rate has also been kept unchanged at 9 percent.
The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, was cut by 0.5 percent to 22.0 percent of their net demand and time liabilities (NDTL) with effect from Aug 9, 2014.
In the day's trade the S&P BSE auto index increased by 327.79 points, healthcare index gained 96.71 point, consumer durables index was up 96.47 points, metal index rose by 84.01 points and bank index was higher by 68.20 points.
However, capital goods index was down 37.89 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading 63.85 points or 0.83 percent up at 7,747.50 points.
The major Sensex gainers were: Mahindra and Mahindra, up 3.75 percent at Rs.1,229; Bajaj Auto, up 2.63 percent at Rs.2,148.15; ONGC, up 2.54 percent at Rs.402.45; HDFC, up 2.00 percent at Rs.1,051.65; and Tata Motors, up 1.99 percent at Rs.455.70.
The losers were: Hero MotoCorp, down 0.64 percent at Rs.2,590; NTPC, down 0.57 percent at Rs.140.65; BHEL, down 0.44 percent at Rs.227.90; Larsen and Toubro (L&T), down 0.40 percent at Rs.1,487.65; and Bharti Airtel, down 0.34 percent at Rs.375.55.
(Posted on 05-08-2014)