Thaindian News

Mumbai, Sep 16 (IANS) A benchmark index for Indian equities markets closed 57 points up Friday amid volatile trade which ensued after the Reserve Bank of India (RBI) announced a 25 basis point increase in the repo rate.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,047.73 points, closed at 16,933.83 points, up 57.29 points or 0.34 percent, from its previous close at 16,876.54 points.

The index was in a see-saw after the RBI announced the hike. It moved up to a high of 17,122.54 points and fell to a low of 16,889.58 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange too followed a similar trajectory and ended at 5,084.25 points, up 0.17 percent.

Broader markets ended dull with the BSE 100 index closing 0.28 percent up. The BSE midcap index closed 0.36 percent up, and the BSE smallcap index closed flat.

PSU index rose on gains in state-run oil and gas firms, which reacted positively to the petrol price hike. Power, and interest rate sensitive stocks like realty, auto and banking too managed good-to-modest gains.

“After the repo rate hike we have seen huge volatility in the market. Though 25 basis points hike in the repo rate was expected and already discounted, but after it was announced sell-off was seen in the market followed by bouts of rebound and fall,” said D.K. Aggarwal, chairman and managing director, SMC Investments and Advisors.

“It appears that uncertainty has increased and a section of the market is also apprehensive that monetary tightening will continue, which will further hamper the growth. However, at lower levels buying is also seen as valuations looks attractive at current prices,” he added.

The market breadth was negative with 1,337 stocks advancing, compared to 1,460 on the decline and 134 remaining unchanged.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors bought stocks worth $34.87 million.

Major gainers on the Sensex included Tata Motors, up 7.02 percent at Rs.161.70; ONGC, up 5.61 percent at Rs.274.70; NTPC, up 4.75 percent at Rs.172; and SBI, up 2.5 percent at Rs.1,945.55.

Prominent losers were Hindustan Unilever, down 2.65 percent at Rs.340.05; Wipro, down 2.37 percent at Rs.339.80; BHEL, down 1.39 percent at Rs.1,686.45; and Tata Steel, down 1.3 percent at Rs.459.75.

Globally, markets were mostly trading higher.

In Asia, Japan’s Nikkei closed 2.25 percent up at 8,864.16 points, while Hong Kong’s Hang Seng index moved up 1.43 percent to close at 19,455.31 points.

Chinese markets closed on a flat note with the Shanghai Composite index closing 0.13 percent up at 2,482.34 points.

European bourses too were in the green.

Britain’s FTSE was up 1.03 percent at 5,392.78 points, the German DAX was trading 2.2 percent up at 5,629.41 points.