Sensex surges 400 pts ahead of RBI policy, Nifty gains 124 points

  • Sensex surges 400 pts ahead of RBI policy, Nifty gains 124 points

Sensex surges 400 pts ahead of RBI policy, Nifty gains 124 points

A string of positive domestic cues, including forecast of a normal monsoon and encouraging services sector PMI data, added to the buying momentum, brokers said.

The 30-share index, which had gained almost 400 points in opening trade, made further headway to quote 577.73 points, or 1.75%, higher at 33,596.80 at closing.

This was its biggest single day gain since March 12 when it had rallied 610.80 points.

The broader 50 shares Nifty of the National Stock Exchange (NSE) too shed 19.50 points (0.18 percent) to 10305.65.

After the central bank allowed banks to spread their debt trading losses of the third and fourth quarters of fiscal 2017-18, over the next four quarters, bank stocks rose yesterday as banks will be able to show higher profitability due to lower provisioning. The overall market breadth corroborated the strong sentiment as more than 2,000 stocks gained on BSE against only 627 declines.

According to the RBI, the decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The reverse repo rate, at which it borrows from banks and absorbs excess liquidity, will remain at 5.75%.

Lupin (+4%), BPCL (+2.2%), Sun Pharma (+1%), HPCL (+1.4%) and Tata Motors (+1.2%) were the top gainers on Nifty50.

Shares on BSE advanced, with all sectoral indices were in the green.

The index closed 1.76% higher at 25,323 level.

In the Asian region, Japan's Nikkei ended 0.36 per cent down, while Hong Kong's Hang Seng rose 1.11 per cent.