Mumbai, April 17 (IANS) A benchmark index for Indian equities markets closed 206.99 points or 1.12 percent higher Tuesday after the Reserve Bank of India (RBI) cut key interest rates.
The RBI in its annual monetary policy for 2012-13 cut some key rates by 50 basis points in a bid to push industrial growth and stimulate the economy -- a move that may also see interest rates falling on housing, automobile and commercial loans.
The news buoyed the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,200.97 points, and closed at 17,357.94 points, up 1.12 percent or 206.99 points from its previous close at 17,150.95 points.
Soon after the announcement around 11:00 a.m. Sensex soared 222.33 points at 17,373.28 points from its previous close at 17,150.95 points.
Even positive global cues from the Euro zone debt crisis also helped the markets.
The 50-scrip S&P CNX Nifty of the National Stock Exchange was trading 1.22 percent or 63.50 points higher at 5,289.70 points from Monday's close of 5,266.60.
Announcing the monetary policy for the current fiscal, RBI Governor D. Subbarao said the repurchase rate was being cut by 50 basis points to 8 percent, which will automatically see the reverse repurchase rate also drop to 7 percent from 7.5 percent.
After this, good buying support was seen in interest rates sensitive banking stocks. The country's largest lender State Bank of India closed the day 1.53 percent or 34.55 points higher at Rs.2,299.95.
The BSE banking index also grew by 95.23 points at 12,123.84 points. Consumer goods index too came out with healthy performance with a rise of about 167.16 points at 10,176.46. Realty index grew by 42.86 points at 1,824.33 points and the auto index rose by 82.59 points at 10,371.53.
Other top gainers were ONGC, whose scrip rose by 3.62 percent or 9.40 points at Rs.268.85, Coal India, up 3.18 percent or 10.80 points at Rs.350, Hindalco, up 3.06 percent at 3.80 points at Rs.127.90, DLF, up 2.76 percent or 5.50 points at Rs.205, and Hero MotoCorp that grew by 2.71 percent or 56.10 points at Rs.2,122.40.
The midcap index of the BSE was up 46.28 points or 0.72 percent while the smallcap index was ruling 43.10 points or 0.63 percent higher.
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