Sensex increases by 185 points as RBI ensures more funds for bank lending
6 Aug 2014 11:47 PM GMT
The benchmark Sensex on Tuesday soared 185 points as rate-sensitive auto, consumer durables and realty shares notched up handsome gains after RBI Governor Raghuram Rajan enabled banks to provide more credit even as he held interest rates for the third straight meeting.
In highly volatile trade, the Sensex opened higher but went into red after the Reserve Bank of India policy was announced. However, after touching the day’s low of 25,562.36, the bluechip index bounced back to end the day at 25,908.01, clocking a rise of 184.85 points, or 0.72 per cent.
The gauge had surged 242.32 points on Monday.
On similar lines, the 50-share NSE index Nifty rose 62.90 points, or 0.82 per cent, to 7,746.55 after shuttling between 7,752.45 and 7,638.05 intra-day.
‘Rajan explained in the media briefing they are doing these as medium term measure to enable banks to be able to provide credit when the economy turns,’ said Murthy Nagarajan, Head (Fixed Income), Quantum AMC.
Global financial major Barclays stated that there is a change in the central bank’s commentary compared to its ‘explicit hawkish stance’ earlier this year. Rise in auto stocks helped the Sensex and the Nifty rebound with M&M, Bajaj Auto, Maruti Suzuki and Tata Motors, lifting the BSE Auto index over 2.11 per cent. Banking index ended 0.28 per cent after earlier falling post RBI policy announcement.
Sectoral indices like BSE realty index rose 2.65 per cent, metal index gained 1.33 per cent, consumer durables index 0.99 per cent and healthcare index 0.58 per cent. In the 30-share Sensex constituents, 20 ended higher, 10 other finished lower. Rise in European stocks at opening on the back of better-than-expected quarterly profits by some companies influenced the trading sentiments here, a broker said.
In highly volatile trade, the Sensex opened higher but went into red after the Reserve Bank of India policy was announced. However, after touching the day’s low of 25,562.36, the bluechip index bounced back to end the day at 25,908.01, clocking a rise of 184.85 points, or 0.72 per cent.
The gauge had surged 242.32 points on Monday.
On similar lines, the 50-share NSE index Nifty rose 62.90 points, or 0.82 per cent, to 7,746.55 after shuttling between 7,752.45 and 7,638.05 intra-day.
‘Rajan explained in the media briefing they are doing these as medium term measure to enable banks to be able to provide credit when the economy turns,’ said Murthy Nagarajan, Head (Fixed Income), Quantum AMC.
Global financial major Barclays stated that there is a change in the central bank’s commentary compared to its ‘explicit hawkish stance’ earlier this year. Rise in auto stocks helped the Sensex and the Nifty rebound with M&M, Bajaj Auto, Maruti Suzuki and Tata Motors, lifting the BSE Auto index over 2.11 per cent. Banking index ended 0.28 per cent after earlier falling post RBI policy announcement.
Sectoral indices like BSE realty index rose 2.65 per cent, metal index gained 1.33 per cent, consumer durables index 0.99 per cent and healthcare index 0.58 per cent. In the 30-share Sensex constituents, 20 ended higher, 10 other finished lower. Rise in European stocks at opening on the back of better-than-expected quarterly profits by some companies influenced the trading sentiments here, a broker said.
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