Sensex Regains 17K Mark, Closes At 10-Week HighMumbai, Jan 25: The BSE Sensex closed above the 17k mark to 10-week high of 17,077.18, up 81 points on sustained buying as RBI policy shifted focus to pushing growth from taming inflation, and investors
Mumbai, Jan 25: The BSE Sensex closed above the 17k mark to 10-week high of 17,077.18, up 81 points on sustained buying as RBI policy shifted focus to pushing growth from taming inflation, and investors settled this months derivative contracts amid strong overseas markets.
Metals, PSU, teck, auto, consumer durables and IT stocks attracted good buying, with 12 of the 13 sectoral indices making gains. Only BSE-Capital Goods finished in the red after yesterday's gains.
Firm cues from the Asian markets aided the sentiment, although weak European equities weighed down the market.
In the last five sessions, Sensex has moved up by 625.71 points or 3.80 per cent, with FIIs - major market movers - pumping in over USD 1 billion so far this month.
Investor confidence got further boost yesterday after the Reserve Bank cut the cash reserve ratio (a portion of deposits banks keep with RBI) by 0.50 percentage points to 5.5 per cent a move that would infuse Rs 32,000 crore in the financial system, easing liquidity.
It also left lending rates unchanged, indicating that its focus would be on growth, going forward rather than taming inflation.
“Markets continued with the bullish momentum after the CRR cut by RBI yesterday, leading investors to look forward to cut in lending rates from this point on and spurring growth,” said Alex Mathew, Research Head of Geojit BNP Paribas.
The Bombay Stock Exchange 30-share index resumed higher but moved in a narrow range before closing at 17,077.18, up 81.41 points or 0.48 per cent.
The NSE 50-issue index Nifty also gained 30.95 points or 0.60 per cent to end at more-than 10-week high of 5,158.30.