Market cheers status quo on rates; Nifty up 1%, reclaims 6,200

The stockmarket cheered the RBI's unexpected decision to keep key policy rates unchanged as the National Stock Exchange (NSE) benchmark index today surged 78 points and settled above the 6,200 mark on all-round buying.
The 50-share CNX Nifty snapped its six-session losing spree as the market shrugged off the bearish mood and posted handsome gains.
The apex bank, at its policy meet today, adopted a wait-and-watch approach and kept the short-term lending rate (repo) and cash reserve reserve ratio unchanged at 7.75 per cent and 4 per cent respectively despite weak macroeconomic fundamentals and inflationary pressure.
The market was widely expecting a 25 bps hike in repo rate and investors were heartened by the status quo. The sentiment was also boosted by good FII buying and positive European cues.

Foreign institutional investors (FIIs) bought shares worth a net Rs 249.93 crore yesterday, as per provisional data from the stock exchanges.
The market saw across-the-board buying but rate sensitive shares of energy, banking, auto sectors, followed by pharma, PSU, FMCG and infra counters mainly fuelled the rally.

Investors are now waiting for the outcome of a two-day US Fed meet on its easy money policy.
The market opened firm ahead of RBI meet and surged after the key rates were kept unchanged. The firmness continued despite some volatility and higher opening in the European bourses led the index to with end with robust gains.

The Nifty traded between a high of 6,236.00 and a low of 6,129.95 before finishing at 6,217.15, up 78.10 points, or 1.27 per cent, over the last close.
Key gainers were BHEL, DLF, PNB, IndusInd Bank, Bajaj Auto, Tata Power, HeroMoto Corp, GAIL, SBIN and L&T.
Turnover in the cash segment jumped to Rs 13,494.03 crore from Rs 10,613.64 crore previously. A total of 6,700.08 lakh shares changed hands in 58,61,356 trades, while market capitalisation stood at Rs 66,94,686 crore.