Indian equities open higher after weekend rate cutsNovember 3rd, 2008 - 12:12 pm ICT by IANS
Mumbai, Nov 3 (IANS) Indian equities opened higher Monday with the mood turning upbeat after the weekend rate cuts announced by the central bank to lower the cost of borrowings for commercial banks and its steps to infuse additional equity.The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened distinctly higher at 10,209.37 points, and soon climbed further to 10,358.63 points, against the previous close at 9,788.06.
Some 30 minutes into trading, the key index was ruling at 10,190.04 points, with a gain of 401.98 points, or 4.11 percent over the previous close. Only one scrip among the 30 that go into the Sensex basket was trading in the red.
The market mood was upbeat on account of the cuts announced by the Reserve Bank of India (RBI) Saturday in the repo rate, the statutory liquidity ratio and the cash reserve ration.
The surprise step will not only lower the cost of borrowings for commercial banks and, in turn, reduce interest rates for households and the corporate sector alike, but also infuse additional liquidity worth Rs.400 billion into the system.