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Sensex surges 362 points on RBI policy, IT sops

Sensex surges 362 points on RBI policy, IT sops
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First Published: Tue, Apr 29 2008. 05 10 PM IST
Updated: Tue, Apr 29 2008. 05 10 PM IST
A softer-than-expected credit policy by the RBI and an extension provided to the software technology parks till March 2010 lifted the benchmark index 2.1% or 362 points by close of trading session on 29 April. It ended the day at 17,378 levels.
In broader markets, the Nifty surged 105 points to close at 5,195 levels. In a move to contain inflation, the apex bank hiked the Cash Reserve Ratio (CRR) by 25 bps to 8.25% effective 24 May. However, it kept the repo, reverse repo and the bank rates unchanged.
“It is a knee-jerk reaction from the market. The burst cannot last too long. The markets have already had a good run over the last few sessions and we are advising clients to utilise the opportunity now to book profits,” said Ambareesh Baliga, vice president, Karvy Stock Broking.
“RBI has surprised the equity market, as they were expecting a hike in the policy rate,” noted Sunil Godhwani, CEO & MD, Religare Enterprises Limited.
Leading the pack of gainers among the BSE 30 scrips was Satyam Computer. The stock moved up over 8.2% or Rs36 by close. ACC, Ambuja Cements, Jaiprakash Associates, Ranbaxy Laboratories, State Bank of India, Mahindra & Mahindra, BHEL and Reliance Industries were some of the other notable gainers.
Strength was also visible in technology counters on the back of the government extending income tax holiday for export-oriented software technology parks till March 2010. Wipro, TCS and Infosys Technologies logged smart gains besides Satyam Computer.
Among sectoral indices, the BSE realty index moved up by over 5%. The banking index surged 1.7% post RBI’s policy review. Key gainers in this space included Federal Bank, State Bank of India, Yes Bank, HDFC Bank, Allahabad Bank, ICICI Bank and Canara Bank. (With wire inputs)
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First Published: Tue, Apr 29 2008. 05 10 PM IST
More Topics: Markets | Sensex | Nifty | RBI | monetary policy |