Stocks were back up on Tuesday after the central bank pleasantly surprised markets with a whopping 50 basis points cut in the Repurchase rate, sparking a mid-day rally in stock prices.
The Reserve Bank of India cut the main lending rate to 6.75 percent in a bid to stoke growth and seed demand in corporate India. Low inflation and benign commodity prices helped Governor Raghuram Rajan to take this giant leap. Predictably banks were on fire.
The Nifty, meanwhile, rose 48 points to end the day at 7,843 points, coming sharply off the day's highs of 7,919 points are traders preferred to book profit rather than stay long in globally volatile times. Interest rate sensitive stocks hogged the limelight: HDFC, M&M, IndusInd Bank, Bank of Baroda and Zee Entertainment were the top five gainers on the Nifty. Metal stocks remained under selling pressure. As a consequence, Vedanta, Tata Steel, Hindalco, BPCL and Adani Ports were the top five losers. The Advance-Decline Ratio stood at 22/28 on the Nifty, reversing in the last hour of trade.
Broader markets inched higher as well with the CNX 100, CNX 200 and CNX 500 Indices adding more than 0.4 percent each. Housing Finance companies were in heavy demand on expectations that a rate cut will help with win more customers. Hence, the CNX Finance index surged 1.7 percent. Smart gains were also seen on the Bank Nifty and the CNX PSU Bank index. The CNX Realty and CNX Media indices also jumped in trade. However, the metals and pharma sectors saw selling with both benchmarks ending in the red.
The Sensex added 162 points, or 0.6 percent, to 25,778 points on the
The broader market saw the bulls and the bears as evenly matched with 1,171 shares advancing compared with 1,155 that fell.
The futures and options space saw build up of long positions in the Realty, Finance and Banking sectors while heavy shorts were seen in the metals space.
Among the stocks touching new highs were Can Fin Homes, Maruti and Avanti Feeds.Stocks were back up on Tuesday after the central bank pleasantly surprised markets with a whopping 50 basis points cut in the Repurchase rate, sparking a mid-day rally in stock prices.
The
The Nifty, meanwhile, rose 48 points to end the day at 7,843 points, coming sharply off the day's highs of 7,919 points are traders preferred to book profit rather than stay long in globally volatile times. Interest rate sensitive stocks hogged the limelight: HDFC, M&M, IndusInd Bank, Bank of Baroda and Zee Entertainment were the top five gainers on the Nifty. Metal stocks remained under selling pressure. As a consequence, Vedanta, Tata Steel, Hindalco, BPCL and Adani Ports were the top five losers. The Advance-Decline Ratio stood at 22/28 on the Nifty, reversing in the last hour of trade.
Broader markets inched higher as well with the CNX 100, CNX 200 and CNX 500 Indices adding more than 0.4 percent each. Housing Finance companies were in heavy demand on expectations that a rate cut will help with win more customers. Hence, the CNX Finance index surged 1.7 percent. Smart gains were also seen on the Bank Nifty and the CNX PSU Bank index. The CNX Realty and CNX Media indices also jumped in trade. However, the metals and pharma sectors saw selling with both benchmarks ending in the red.
The Sensex added 162 points, or 0.6 percent, to 25,778 points on the Bombay Stock Exchange. Maruti, Tata Motors, ONGC were among the winners while Dr. Reddy's, Sun Pharma and Bajaj Auto slipped in trade. The Advance-Decline Ratio on the Sensex was 14/16 and Axis Bank, SBI and ICICI were the top 3 most traded stocks on the index.
The broader market saw the bulls and the bears as evenly matched with 1,171 shares advancing compared with 1,155 that fell.
The futures and options space saw build up of long positions in the Realty, Finance and Banking sectors while heavy shorts were seen in the metals space.
Among the stocks touching new highs were Can Fin Homes, Maruti and Avanti Feeds.
Image credit: Indiatimes