Soon after the Reserve Bank left key policy rates unchanged at the first quarter policy review, the BSE benchmark index declined to day’s low of 17,004.09 — nearly 140 points down from yesterday’s close.
However, the 30-share index bounced back by nearly 200 points from the day’s nadir with buying emerging in 17 stocks including Reliance, ONGC, Sterlite, Tata Motors and Wipro.
The Sensex ended the day higher at17,236.18, up by 92.50 points, or 0.54 per cent from its previous close. This is highest closing since July 19.
Likewise, the 50-share NSE index Nifty rose by 29.20 points to 5,229, after dipping to 5,154.05 during the day.
Refinery, realty, IT, pharma and metal counters attracted good buying support while consumer durables, banking and power suffered losses. The market breadth remained positive as 1,435 stocks closed higher while 1,296 scrips ended lower.
“The RBI has cut the SLR from 24 per cent to 23 per cent…All other key rates has been kept unchanged. Globally, expectations have arisen that the ECB would do something along with an expected rate cut,” said Vivek Mahajan, Head of Research, Aditya Birla Money.
Bharti Airtel was the biggest loser today shedding 2.77 per cent on reports of equity raising plans. SBI, Hero Moto and Jindal Steel lost one per cent each.
Brokers said RBI policy stance was largely on expected lines after it had earlier indicated its priority remained inflation. However, shares rose in sync with global market.
The markets had surged over 300 points yesterday on hopes of a rate cut by RBI.
Asian markets, barring China, closed with gains between 0.13 pct and 2.07 per cent. European stocks were last trading mixed with indices in France and Germany up.