Mumbai: The Reserve Bank’s decision to keep all key rates unchanged in its annual credit policy announced on 24 April 2007 sparked off a strong 208-point rally on the stock market, which ended past the psychologically important 14,000 mark for the first time after February 22.
There was across-the-board buying support after the RBI kept banks’ cash provisioning (CRR), short-term lending and borrowing (repo and reverse repo) rates and bank rates unchanged in its anxiously-awaited policy, brokers said.
Resuming weak at 13,893.72, the Bombay Stock Exchange 30-share Sensex later surged strongly to the intra-day high of 14,197.32 before ending the day at 14,136.72, a net rise of 208.39 points or 1.5% over yesterday’s close of 13,928.33.
The broader S&P CNX Nifty of the National Stock Exchange gained 56.70 points or 1.39% to close at 4,141.80 from the previous close of 4,085.10.
Bank shares attracted hectic buying interest and closed with hefty gains. As a result, the Bankex jumped by a whopping 279.56 point or 4.06% to end at 7,161.40.
IT companies which have large export revenue, however, remained hesitant as RBI’s policy is likely to help the rupee strengthen further eroding into their bottom lines.
Shares of the top heavyweight Reliance Industries touched yet another peak at Rs 1,580.45, gaining Rs 26.35 at close.