Home / Market / Stock-market-news /  Sensex perks up 162 points after RBI springs a surprise

Mumbai: Recovering from early losses, the benchmark BSE Sensex surged over 750 points from the session’s low after the Reserve Bank of India (RBI) surprised with a bigger-than-expected rate cut but late selling in healthcare and metal stocks trimmed gains and the index ended 161.82 points higher at 25,778.66. Besides, the NSE Nifty recaptured the 7,800 mark by rising 47.60 points, or 0.61% to close at 7,843.30. Rupee strengthening against the US dollar during the day also helped.

Shares of metal, healthcare, oil and gas and consumer durables, however, ended on the losing side. In a big boost to the economy and borrowers, RBI on Tuesday announced a 0.5% cut in repo rates to 6.75%. The apex bank also hiked limits for FPI investment in government securities to 5% of the outstanding stock by March 2018, a move that will bring in an additional 1.2 lakh crore in G-sec.

The uptick was tempered by RBI’s pessimistic stance on economy as it revised its real gross domestic product forecast for 2015-16 to 7.4% from earlier expectation of 7.6%. The BSE Sensex after taking off on a negative note slipped further to a low of 25,287.33. However, it rebounded on RBI’s announcement and regained the 26,000-mark to hit a high of 26,054.37.

Profit-booking towards the fag-end pulled the index down from day’s high and it settle 161.82 points, or 0.63% higher, at 25,778.66. Out of the 30-share Sensex pack, 14 stocks ended higher.

Prominent gainers from the index included HDFC, Maruti Suzuki, Mahindra and Mahindra, Coal India, Larsen and Toubro, HDFC Bank, Tata Motors, Infosys, Bharat Heavy Electricals, State Bank of India, Reliance Industries, Oil and Natural Gas Corp, ITC and ICICI Bank.

Sectorwise, BSE realty index gained the most by surging 1.99%, followed by banking 0.90%, auto 0.76%, capital goods 0.65%, power 0.52%, IT 0.38% and PSU 0.31%.

In line with overall trends, mid-cap index rose 0.42% but small-cap ended 0.11% lower. Global cues were largely negative on global growth worries amid a slowdown in China and uncertainty over the US Federal Reserve’s actions.

Meanwhile, foreign investors sold shares worth 650 crore on Monday as per provisional data.

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