Sensex continues to rule above 20K level on RBI measures
Mumbai: The benchmark S&P BSE Sensex regained the 20,000 mark Tueaday and stayed above that level in second hour of trade amid buying in banking, realty and capital goods sector stocks after the RBI took steps to ease liquidity.
Capital inflows also boosted sentiment, with overseas investors having bought a net Rs 494.13 crore of shares on Monday, according to provisional stock exchange data.
The Sensex resumed higher at 20,094.21 and hovered in a range of 20,034.52 to 20,150.27. The index was at 20,112.47, a gain of 217.37 points, or 1.09 percent, from the previous close.
The 50-share CNX Nifty on the National Stock Exchange firmed up 67.45 points, or 1.14 percent, to 5,973.60.
The major gainers included Bharti Airtel (3.43 percent), ICICI Bank (3.01 percent), Larsen and Toubro (2.97 percent), Tata Motors (2.92 percent) and Tata Power (2.14 percent).
The Reserve Bank of India yesterday cut the marginal standing facility (MSF) rate, at which it lends emergency funds to banks, by 50 basis points to 9 percent with the aim of improving liquidity. The bank rate, too, was adjusted to 9 percent with immediate effect.
The RBI had taken steps in mid July, including raising the MSF rate to 10.25 percent, to tighten liquidity in an attempt to curb volatility in the rupee-dollar exchange rate.
Asian markets were mostly higher. Key indices in China, Taiwan, Hong Kong, Singapore and Indonesia rose while indices in Japan and South Korea fell.