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Sensex up 400 points as Rajan sparks reform hopes

Last Updated: Thursday, September 5, 2013 - 11:39

Zee Media Bureau

New Delhi: The benchmark S&P BSE Sensex on Thursday surged nearly 400 points after the new Reserve Bank of India (RBI) chief Raghuram Rajan's comments on potential measures sparked hopes of more reforms aiding the economy and the currency.

The 30-Share barometer Sensex climbed by 392 points to 18,989 with all sectoral indices, except IT, trading in the positive zone rising up to 7.53 percent.

Similarly, the wide-based National Stock Exchange index Nifty gained by 131 points to 5,557.

Blue chip shares, especially banks, jumped with NSE bank index surging as much as 9.4 percent after the new RBI governor announced a slew of measures to ease liquidity pressures on banks. Indices Performance

ICICI bank Ltd rose 7.76 percent while Axis Bank Ltd rose nearly 10 percent.

Banking, realty, capital goods and consumer durables stocks were leading gainers. Top gainers on BSE.

Brokers said sentiments turned buoyant after new RBI Governor Raghuram Rajan yesterday came out with a slew of measures, including more trade settlement in rupees to rescue the battered financial markets.

The rupee today recovered by 153 paise to to 65.54 against dollar.

The new RBI governor yesterday announced measures, such as liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds, to support the rupee.

In the Asian region, Hong Kong's Hang Seng index rose by 0.95 per cent, while Japan's Nikkei was up by 0.61 percent in early trade.

The US Dow Jones Industrial Average ended 0.65 percent higher yesterday.

With Agency Inputs

First Published: Thursday, September 5, 2013 - 09:30
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