Indications of easing of rates at the next quarterly policy meet by the RBI amid firm European opening on hopes to avoid US fiscal cliff helped the benchmark Sensex recover by over 120 points to close at 19,364.75, in otherwise volatile trading on Tuesday.
The BSE’s 30-share barometer resumed better on hopes of key rates cut by the RBI in mid-quarter monetary policy review, but fell back to a low of 19,149.03, down by over 95 pts, after the central bank decided to keep both key rates, short-term lending (repo) rate and Cash Reserve Ratio (CRR) unchanged.
However, intimation of rates cut in the next quarterly monetary policy meeting in last week of January next year saying with decline in inflation, later helped the Sensex to recover to end at 19,364.75, showing a rise of 120.33 points or 0.63 pct.
Optimism over the progress made by US policy makers last night to avoid the fiscal cliff too boosted the sentiment. Buying was seen across-the-board as 12 out of 13 sectoral indices closed with gains while only BSE-Oil&Gas finished with minor losses as RIL and ONGC closed in the red.
Rise in Sensex-based counters like Bharti Airtel, HDFC, L&T, Tata Steel, SBI, Tata Motors, BHEL, Sun Pharma, ICICI Bank and Hindalco contributed immensely to the sensex gain. The 50-issue S&P CNX Nifty of the NSE too bounced back by 38.90 points (0.66 per cent) to 5,896.80.
The BSE’s 30-share barometer resumed better on hopes of key rates cut by the RBI in mid-quarter monetary policy review, but fell back to a low of 19,149.03, down by over 95 pts, after the central bank decided to keep both key rates, short-term lending (repo) rate and Cash Reserve Ratio (CRR) unchanged.
However, intimation of rates cut in the next quarterly monetary policy meeting in last week of January next year saying with decline in inflation, later helped the Sensex to recover to end at 19,364.75, showing a rise of 120.33 points or 0.63 pct.
Optimism over the progress made by US policy makers last night to avoid the fiscal cliff too boosted the sentiment. Buying was seen across-the-board as 12 out of 13 sectoral indices closed with gains while only BSE-Oil&Gas finished with minor losses as RIL and ONGC closed in the red.
Rise in Sensex-based counters like Bharti Airtel, HDFC, L&T, Tata Steel, SBI, Tata Motors, BHEL, Sun Pharma, ICICI Bank and Hindalco contributed immensely to the sensex gain. The 50-issue S&P CNX Nifty of the NSE too bounced back by 38.90 points (0.66 per cent) to 5,896.80.