Sensex recaptures mount 27k after 7 months on RBI's accomodative stance

Mumbai: RBI's policy stance to stay accomodative gave market a shot in the arm Tuesday 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.

 Sensex recaptures mount 27k after 7 months on RBIs accomodative stance


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 percent and the cash reserve requirement at 4 percent.

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 percent, at 27,009.67, a level last seen on 28 October 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 percent.

The central bank also retained India's growth projection at 7.6 percent for 2016-17, refering to corporate profits and a surge in consumption.

The state-run SBI took the cake by surging 5.4 percent, followed by ICICI Bank 4.31 percent.

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 percent.

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. Japan's Nikkei rose 0.58 percent while China's Shanghai index was up 0.07 percent and Hong Kong's Hang Seng rose 1.42 percent. Europe was also higher in its early trade.

Out of the 30-share Sensex pack, 25 ended in the green.

The BSE realty index gained the most by climbing 1.70 percent followed by banking (1.63 percent), consumer durables (1.57 percent), FMCG (1.35 percent), metal (1.30 percent), capital goods (1.23 percent), and PSU (1.10 percent).

In broader markets, the BSE small-cap index surged 0.96 percent and the mid-cap 0.29 percent.

Foreign portfolio investors (FPIs) bought shares worth net Rs 28.80 crore Monday, as per provisional data released by the stock exchanges.

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Updated Date: Jun 07, 2016 17:43:58 IST