Brings buoyancy on bourses
Key benchmark indices, on Tuesday, reached their highest closing level in more than 10 weeks as the RBI’s latest move to cut the cash reserve ratio (CRR) requirement for banks by 50 basis points to 5.5 per cent at its third quarterly policy review boosted investor sentiment in D-Street.
But experts feel the market may soon witness a correction as it had rallied 10 per cent since the start of 2012. The market edged higher in early trade to hit highest level in nearly seven weeks. Key benchmark trimmed gains in mid-afternoon trade and thereafter, the market further trimmed gains in late trade.
The BSE Sensex jumped 244.04 points or 1.46 per cent to settle at 16,995.77, its highest closing level since November 14, 2011. The index gained 298.59 points at the day’s high and 18.28 points at the day’s low. The S&P CNX Nifty jumped 81.10 points or 1.61 per cent to settle at 5,127.35, its highest closing level since November 14, 2011. The index hit a high of 5,141.05 and a low of 5,049.80 in intraday trade.
From broader markets, the BSE Mid-Cap index rose 1.38 per cent and the BSE Small-Cap index gained 0.7 per cent. The market breadth, indicating the overall health of the market, was positive with 1,596 shares on BSE advanced and 1,217 shares declined, while a total of 134 shares remaining static. BSE clocked turnover of Rs 4664 crore, sharply higher than turnover of Rs 2159.90 crore on Monday.
