After yesterday’s steep fall, markets seem to have gathered momentum as they rose ahead of the RBI monetary policy on 18 June. Both the Sensex and the Nifty closed up 1.6 percent and 1.7 percent respectively. The BSE Sensex, the barometer of the Indian economy, closed up 272 points to 16,950, up 249 from the day’s low. The S&P CNX Nifty also closed up 84 points higher at 5,139.
The market breath was postive. On the BSE, 1,523 advanced while 1,169 declined.
The rise in markets could also be attributed to reports that central banks of major economies are ready to provide liquidity if needed after crucial elections in Greek on Sunday, 17 June 2012. This vote is expected to determine the Greece‘s future in the euro zone.
All sectoral indices closed in the green today led by autos and bankex which rose more than 2 percent each. Auto stocks closed higher as the Reserve Bank of India’s (RBI) is expected to cut its key policy rate viz. the repo rate by 25 basis points at mid-quarter monetary policy review on Monday, 18 June 2012. Lower interest rates may help revive demand for vehicles.
Banks also rose ahead of the RBI’s policy decision on Monday as traders bet the central bank could deliver a cut in the repo rate to bolster growth, while also cutting the cash reserve ratio to ease tight liquidity.
In the 30-share Sensex pack, Tata Motors was the top gainer with a jump of 5.75 percent. The stock gained after the company’s global sales rose 12 percent year-on-year to 96,089 units. Also news that Ratan Tata had picked up 4.25 lakh shares of the company through the open market on Thursday added to the enthusiasm.