Sensex rises 88 points; realty, capital goods stocks climb

A benchmark index of Indian equities markets rose 88 points Tuesday led by a good buying support in interest rate sensitive realty and capital goods stocks after the Reserve Bank of India lowered the marginal standing facility rate by 0.50 percent.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE), which opened sharply higher at 20094.21 points, ended the day at 19983.61 points, down 0.44 percent or 88.51 points from its previous day close at 19895.10 points.

The Sensex touched a high of 20150.27 points and low of 19936.72 points in the intra-day.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) rose 0.38 percent or 22.25 points to 5,928.40 points.

Strong buying support was witnessed in the interest rate sensitive realty, capital goods and banking stocks a day after the central bank eased liquidity.

The Reserve Bank of India (RBI) Monday cut marginal standing facility rate, a key overnight interest rate, by 0.50 percent 9 percent.

This is the second time in less than a month that the central bank has cut the key overnight interest rate. The RBI had lowered the marginal standing facility rate by 0.75 percent in its mid-quarter review of the monetary policy announced Sep 20.

Realty index of the BSE jumped 1.57 percent. Capital goods index climbed 1.32 percent. FMCG index gained 0.78 percent and banking index closed 0.67 percent higher.

However, metal, IT and PSU indices of the BSE ended the day in the red.

Tata Power, 2.87 percent higher at Rs.84.10; Bharti Airtel, up 2.77 percent at Rs.331.50; L&T, up 2.38 percent at Rs.828.10; ICICI Bank, up 2.26 percent at Rs.937.20 and ITC, up 2.24 percent at Rs.347.50 were among the prominent Sensex gainers.

Major Sensex losers included: Hindalco Inds, down 1.77 percent at Rs.119.50; SBI, down 1.29 percent at Rs.1611.65; Tata Steel, down 1.22 percent at Rs.296.70; Coal India, down 1.18 percent at Rs.296.55 and SSLT, down 1.11 percent at Rs.186.25.