Markets surge as RBI meets expectations

Markets surge as RBI meets expectations

New Delhi: Stocks surged after the Reserve Bank of India (RBI) announced to hike repo, reverse repo and CRR (Cash Reserve Ratio) by 25 basis points each, in line with the market expectations on Tuesday.

Realty sector gained by almost 2.5% as banking stocks surged significantly riding on the RBI’s positive outlook as stated in the annual policy statement. Moreover, PSUs, oil & gas and auto sectors gained by more than one percentage point during mid-day trading. On the other hand, technology segment witnessed selling pressure on the back of the rupee’s appreciation against the dollar.

The 30-share BSE Sensex advanced 130.34 points or 0.75% to 17,531.02. Realty is up 2.49%, banks up 1.64%, PSU up 1.57%, oil & gas up 1.31% and auto up 1.17% were the top gainers on the BSE.

DLF is up 2.75%, Reliance Infra by 2.49%, ICICI Bank by 2.31%, SBI by 2.23% and Mahindra & Mahindra up 2.06%, among the major gainers on the Sensex.

On the other hand, TCS is down 1.29%, Hero Honda 0.89%, Bharti Airtel 0.49%, Infosys 0.23% and Tata Power 0.18% were the major losers on the index.

RBI said in its annual monetary policy statement for FY11 that as long as monsoon comes out to be normal, gross domestic product (GDP) should expand by over 8% in FY11.

Asian markets were trading mostly in the positive terrain. Hang Seng advanced 0.79% and Nikkei 225 down 0.07%.