As predicted before the opening bell, Indian stock market was highly volatile today. Both, BSE Sensex and NSE Nifty opened on a positive note today, buoyed by positive trend of global markets and hope of some kind of repo rate cut by RBI. Signs of progress in US budget talks to avert the fiscal cliff also boosted the market sentiment and there was a high degree of optimism in the beginning.
But as soon as RBI declared its monetary policy, the market went into a tail spin and witnessed a sharp selloff. Though there was not much hope of a repo rate cut, but there was indeed a strong sense of optimism about a lowering the cash reserve ratio (CRR). But the apex bank disappointed by deciding to keep the cash reserve ratio (CRR) unchanged at 4.25%; and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8%.
After the sharp fall, market slowly but steadily recovered, buoyed by positive trends throughout Asian markets and hope that the Banking Amendment Bill, tabled and passed today in the lower house of the parliament will easily get a go ahead in upper house as well. The bill will be tabled in the upper house of parliament for voting on Thursday, where it is also likely to be passed as it is backed by India's two biggest parties. The bill will clear a path for more foreign investment in the banking sector by approving a bill to increase shareholders' voting rights, after dropping a controversial clause allowing banks to trade in commodity futures.
After that there was no looking back and the market ended with smart gains. BSE Sensex closed at 19364.75, up 120.33 points over the previous close. It had earlier touched a day's high of 19396 and a day's low of 19149, before opening at 19293. The NSE Nifty closed at 5896.80, up 38.90 points over the previous close. It earlier touched a day’s high of 5906 and a day’s low of 5823 before opening at 5873.
Infosys, Wipro, TCS, SBI, ICICI Bank, Tata Steel, Hero MotoCorp, Tata Motors, Hindalco, Wipro, NTPC, Bharti Airtel, Sun Pharma, BHEL, HDFC were among gainers in Sensex and Nifty. While, RIL, Maruti Suzuki, ONGC, Bajaj Auto, HDFC Bank were among losers in Sensex and Nifty.
Sectoral-wise, the BSE Oil & Gas index was the only loser, the index ended lower by 0.21%. Among the top gainers, BSE realty index led from the front, up 2.4%, followed by BSE Metal and the Capital Goods index, up 1.7%. BSE Teck and BSE Power index were among the other major gainers, adding 1.5% and 1.1% respectively. Even the Mid-Cap and the Small-Cap stocks witnessed healthy buying.
But as soon as RBI declared its monetary policy, the market went into a tail spin and witnessed a sharp selloff. Though there was not much hope of a repo rate cut, but there was indeed a strong sense of optimism about a lowering the cash reserve ratio (CRR). But the apex bank disappointed by deciding to keep the cash reserve ratio (CRR) unchanged at 4.25%; and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8%.
After the sharp fall, market slowly but steadily recovered, buoyed by positive trends throughout Asian markets and hope that the Banking Amendment Bill, tabled and passed today in the lower house of the parliament will easily get a go ahead in upper house as well. The bill will be tabled in the upper house of parliament for voting on Thursday, where it is also likely to be passed as it is backed by India's two biggest parties. The bill will clear a path for more foreign investment in the banking sector by approving a bill to increase shareholders' voting rights, after dropping a controversial clause allowing banks to trade in commodity futures.
After that there was no looking back and the market ended with smart gains. BSE Sensex closed at 19364.75, up 120.33 points over the previous close. It had earlier touched a day's high of 19396 and a day's low of 19149, before opening at 19293. The NSE Nifty closed at 5896.80, up 38.90 points over the previous close. It earlier touched a day’s high of 5906 and a day’s low of 5823 before opening at 5873.
Infosys, Wipro, TCS, SBI, ICICI Bank, Tata Steel, Hero MotoCorp, Tata Motors, Hindalco, Wipro, NTPC, Bharti Airtel, Sun Pharma, BHEL, HDFC were among gainers in Sensex and Nifty. While, RIL, Maruti Suzuki, ONGC, Bajaj Auto, HDFC Bank were among losers in Sensex and Nifty.
Sectoral-wise, the BSE Oil & Gas index was the only loser, the index ended lower by 0.21%. Among the top gainers, BSE realty index led from the front, up 2.4%, followed by BSE Metal and the Capital Goods index, up 1.7%. BSE Teck and BSE Power index were among the other major gainers, adding 1.5% and 1.1% respectively. Even the Mid-Cap and the Small-Cap stocks witnessed healthy buying.
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