Sensex rallies 315 points as RBI hints at no more hikes

October 25th, 2011 - 7:12 pm ICT by IANS  

Sensex Mumbai, Oct 25 (IANS) A benchmark index for Indian equities markets shot up in the last hour of trade Tuesday to close 315 points higher after the Reserve Bank of India (RBI) hinted that it would not raise key interest rates anytime soon.

While hiking the repo rate by 25 basis points in its second quarter policy review, the RBI said it may hold off another rate hike if inflation starts declining from December as it expected.

The central bank, however, lowered growth estimates for the current fiscal to 7.6 percent.

The 30-scrip sensitive index (Sensex) of the BSE opened at 17,012.79 points and closed at 17,254.86 points, up 315.58 points or 1.86 percent from its previous close at 16,939.28 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also similarly rose to close 1.83 percent higher at 5,191.6 points.

At the broader markets, the BSE midcap index rose 0.4 percent, while the smallcap index closed flat. The BSE 500 index closed 1.32 percent up.

Consumer durables and banking stocks fell the most, while auto and IT stocks rose.

The market breadth was mixed with 1,375 stocks advancing compared to 1,374 scrips on the decline and 129 remaining unchanged.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors were net buyers to the tune of $29.43 million.

The prominent Sensex gainers included M&M;, up 5.49 percent at Rs.853.20; Wipro, up 4.29 percent at Rs.373.30; HDFC, up 4.23 percent at Rs.667.85 and RIL, up 3.4 percent at Rs.875.

Losers included: SBI, down 3.52 percent at Rs.1,840.45; HDFC Bank, down 3.17 percent at Rs.468.75 and BHEL, down 1.07 percent at Rs.314.95.

Asian markets ended mixed amid some doubts about European leaders’ ability to find a lasting solution to the region’s sovereign debt crisis.

The Japanese Nikkei Tuesday closed 0.92 percent lower at 8,762.31 points, while Hong Kong’s Hang Seng ended 1.05 percent up at 18,968.2 points.

The Chinese Shanghai composite index ended 1.66 percent higher at 2,409.67 points.

European markets too were ruling on a mixed note.

Around mid-day, Britain’s FTSE was trading 0.27 percent up at 5,563.02 points, while the French CAC 40 was ruling 0.21 percent down at 3,213.6 points.

The German DAX was ruling 1.19 percent up at 6,127.03 points.

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