Sensex zooms 1.5%, RBI policy trigger rally in indices

MUMBAI (Makemystocks): Indian equity markets opened gap up amid positive global cues. Indices remained choppy and lackluster in opening session ahead of RBI policy review.

RBI cut cash reserve ration (CRR) by 50 bps to 5.5%. RBI kept repo and reverse repo rates unchanged at 8.5% and 7.5% respectively. Market zoomed in afternoon session led by Financial, Metal and Auto stocks after RBI announce CRR cut.

Sensex touched key psychological level of 17000 in afternoon session. All round buying lifted indices up 1.5%. Markets breadth remained positive back of broad base buying. Both Midcap and Smallcap indices closed with gain of 1.3% and 0.7% respectively.

BSE Sensex closed at 16995.77 with the gain of 244.04 points and at NSE Nifty closed at 5127.35 with the gain of 81.10 points at the end of the day. BSE MIDCAP index closed at 5761.91 with the gain of 78.71 points and BSE SMALLCAP index closed at 6338.01 with the gain of 44 points.

In percentage terms key gainers were Larsen & Toubro Ltd (NSE: LT), Infrastructure Development Finance Company Ltd (NSE: IDFC) and State Bank of India Ltd (NSE: SBIN) while key losers were Coal India Ltd (NSE: COALINDIA), Grasim Industries Ltd (NSE: GRASIM) and Sun Pharmaceuticals Industries Ltd (NSE: SUNPHARMA).

On sectoral front almost all the sectoral indices closed in green. Major buying was seen in Capital Goods, Banking & Financial, Metal, Auto, Realty, IT and Oil & Gas sectors. Market breadth on BSE remained positive were 1613 advances against 1213 declines stocks.

From the perspective of weight in Nifty key gainers were Larsen & Toubro Ltd (NSE: LT), CICI Bank Ltd (NSE: ICICIBANK) and State Bank of India Ltd (NSE: SBIN) while key losers were Coal India Ltd (NSE: COALINDIA), Hindustan Unilever Ltd (NSE: HINDUNILVR) and Sun Pharmaceuticals Industries Ltd (NSE: SUNPHARMA).

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