Stock market barometer Sensex on Tuesday jumped by over 290 points on Reserve Bank’s decision to keep benchmark rates stable, while ignoring the marginal hike in the amount of depositors’ money banks should keep with the central bank.
Marketmen attributed the sharp rise to across-the-board buying support that followed the quarterly monetary policy review by the apex bank. RBI’s decision to remove the Rs 3,000 crore cap on daily reverse repo (overnight borrowing) transactions too helped trading sentiments. The RBI hiked the Cash Reserve Ratio (CRR) by 0.5 per cent but removed the cap on daily reverse repo transaction. The 30-share Bombay Stock Exchange (BSE) sensitive index (Sensex) ended at 15,550.99, a whopping rise of 290.08 points or 1.90 per cent over Monday’s close of 15,260.91. Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) flared up by 88.80 points or 2.0 per cent to close at 4,528.85 from previous close of 4,440.05.
Shares of capital goods companies hit the roof on strong order books. As a result, the BSE CG Index was up by 622.81 points or 4.90 pc to close at 13,321.78.