Todays Stock Market: The Sensex rose 747 points on Friday amid the positive perception arising out of the Reserve Bank’s decision to arrange the policy interest rate by half a percent and to provide additional funds to give loans to banks, while the Nifty once again crossed the 25000 level.
The Reserve Bank of India (RBI) reduced the repo rate from 0.50 percent to 5.5 percent after the Monetary Policy Committee meeting. Along with this, it was also announced to cut one percent in the cash reserved ratio (CRR). Analysts said the stock markets jumped in the hope of supporting the economic growth from these steps of RBI.
Nifty again crosses 25000: BSE’s 30 -share standard index jumped at 746.95 points, or 0.92 percent, closed at 82,188.99 points. At one time during trading, it rose 857.85 points to 82,299.89 points. The 50 -share index Nifty of the National Stock Exchange (NSE) once again reached the 25,000 level. At the end of the trading, it climbed 252.15 points i.e. 1.02 percent to close at 25,003.05 points.
The realty section, considered sensitive for the interest rate, recorded a jump of 4.74 percent, while the vehicle section rose by 1.50 percent and the banking section 1.25 percent.
Dharna changed due to repo rate cuts: Ajit Mishra, Senior Vice President (Research), Railor’s Broking Limited, said that the result of the Monetary Policy Committee meeting was a little cautious before the result, but the perception of a reduction of repo rate by 0.50 percent and the unprecedented announcement to reduce CRR by one percent was completely changed. Amidst this buying, Bajaj Finance rose 4.93 percent and Axis Bank 3.15 percent among the companies of Sensex.
Apart from this, shares of Maruti, IndusInd Bank, Bajaj Finserv, Internal, Mahindra & Mahindra, Tata Steel, Kotak Mahindra Bank, Titan, HDFC Bank and NTPC were also successful in taking the lead. On the other hand, shares of Bharti Airtel and Sun Pharma closed down with a decline.
Optimistic response: Vinod Nair, Head of Research of Jiojit Investments Limited, said the stock market expressed an optimistic response to RBI’s surprise and aggressive growth incentive policy. The announcement of raising cash in interest rate and increasing cash through CRR deduction will strengthen the RBI’s strong commitment to gain speed, promote investment and increase consumption.
In the broad market, the midcap index of the medium companies showed a rise of 0.91 percent, while the small companies’ Smallcap index increased by 0.43 percent. The shares of 2,278 companies listed on BSE climbed off to climb while 1,744 shares fell and 134 others remained unchanged. On weekly basis, the Sensex saw a total increase of 737.98 points i.e. 0.90 percent and the Nifty 252.35 points, or one percent.
Other markets in Asia, South Korea’s Korea, Nikki 225 of Japan and Shanghai Composite of China were closed in positive realm, while Hong Kong’s Hang Seng was on a decline. There was a mixed trend in European markets. The US markets closed down on Thursday.
According to stock market data, foreign institutional investors (FIIs) on Thursday sold shares worth Rs 208.47 crore. Global oil standard brent crude fell 0.46 percent to $ 65.04 per barrel. The BSE Sensex rose by 443.79 points to 81,442.04 points on Thursday and NSE Nifty closed 130.70 points to close at 24,750.90 points. (Language/Webdunia)
Edited by: Vrijendra Singh Jhala
