Millennium Post

SLR dip lifts Sensex 174 points to record close

The BSE benchmark Sensex on Tuesday jumped by nearly 174 points to end the day at all-time closing high of 24,858.59 as sentiment remained positive after the RBI pleased markets by unlocking about Rs 40,000 crore of banking funds by cutting the statutory liquidity ratio (SLR).
Boosting investor sentiment, the Reserve Bank of India (RBI) also allowed foreign portfolio investors to participate in the domestic exchange traded currency derivatives markets.

Brokers said eight core sector industries posting a 4.2 per cent growth in April also buoyed markets..
The 30-share BSE barometer resumed the day better on firm Asian cues and moved erratically before settling at 24,858.59, a gain of 173.74 points or 0.70 per cent from its last close.

Bank counters came under selling pressure, while rate sensitive realty index jumped 3.15 per cent.
It was metal stocks which hogged the limelight after surveys showed China's factory and services sectors had their best showings in many months in May.

Tata Steel zoomed 6.69 per cent, followed by Sesa Sterlite which jumped 6.53 per cent.‘RBI pleased market with SLR cut which is a huge positive sign for realty and banks. The SLR cut has come at the right time. It shows that there is good synergy between the Finance Minister and RBI.’

‘Market has taken the same positively....More and more inflow will come in anticipation of robust budget. PSU stocks are getting more attractive after PMO decided that PSUs be brought under one umbrella,’ said Kishor P Ostwal, CMD, CNI Research. The 50-share Nifty of NSE also rose by 53.35 points or 0.72 per cent to settle at all-time closing high of 7,415.85.Of the 30 Sensex stocks, 17 ended higher while 13 closed the day in the red.

Coal India at 5.29 per cent, ONGC 4.40 per cent, Bhel at 3.48 per cent, Hindalco Ind at 3.23 per cent, NTPC 3.14 per cent, Hero Motocorp 2.96 per cent, HDFC 1.69 per cent and Reliance Ind 1.15 per cent were other notable Sensex gainers.Dr Reddy's Lab fell 3.15 per cent, Gail India 2.07 per cent, HUL 1.51 per cent and ITC 1.16 per cent.Among BSE sectoral indices, metal rose by 5.06 per cent, realty 3.15 per cent, oil & gas 1.76 per cent, Power 1.44 per cent, consumer durables 1.44 per cent and consumer goods 1.25 per cent.

The total market breadth continued to rule firm as 1,921 stocks finished higher, 1,089 stocks ended lower and 96 ruled steady. The total turnover rose to Rs 4,084.34 crore from Rs 3,619.44 crore on Monday.
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