Markets shrug off CRR hike, end in green

The Sensex opened at 16,253.82 owing to weak global cues and ahead of the monetary policy review by the Reserve Bank Of India.

The markets exhibited extreme weakness and slipped to a low of 15,982.08 as a knee jerk reaction to the 75 basis points Cash Reserve Ratio (CRR) hike announced by the RBI, but soon erased most of its losses on renewed buying interest in banking and realty stocks.The CRR hike was suprisingly higher than the 50 bps expected by the markets. The first phase of 50 basis points CRR hike is effective from 13 February 2010 and the second stage effective from 27 February 2010.

Firm European stocks and higher US index futures aided a strong intraday rebound on the domestic bourses. The Sensex soared to a high of 16,390, up 408 points from the day's low. The bench mark index finally ended at 16,358, up 51 points and the NSE Nifty closed shop at 4,882, up 14 points.

The market breadth was positive, out of 2,887 shares traded, 1,476 advanced and 1,350 declined so far on the BSE.

Among the sectoral indices, bankex index soared 3% to 9,654 and the realty index increased 2.5% to 3,500, respectively.

While FMCG and the metal index slipped 1.5% each to 2,725 and 15,962, respectively.

INDEX GAINERS...

ICICI Bank was the top gainer, soared 5% to Rs 830. BHEL and SBI advanced 3% each to Rs 2,406 and Rs 2,058, respectively.

DLF, HDFC Bank and Jaiprakash Associates were up 2% each at Rs 333, Rs 1,631 and Rs 137, respectively,

The other major gainers were Sun Pharma, HDFC, Hero Honda and Reliance, up over 1% each.

...AND THE SHAKERS

Hindustan Unilever was the mjaor loser on the BSE, slipped 4.5% to Rs 244 and Wipro declined 4% to Rs 647. Tata Motors, Tata Steel and Bharti Airtel were down over 2.5% each at Rs 694, Rs 569 and Rs 307, respectively.

ITC, Sterlite and Tata Power were down over 1% each.

VALUE & VOLUME TOPPERS

SBI topped the value chart on the BSE with a turnover of Rs 249.46 crore. It was followed by ICICI Bank (Rs 207.28 crore), Aban Offshore (Rs 202.44 crore), Tata Steel (Rs 176.40 crore) and HDIL (Rs 121.90 crore).

Cals Refineries led the volumes chart on the BSE with a turnover of 23.44 million shares. It was followed by Unitech (13.61 million), IFCI (13.33 million), Himachal Futures (11.93 million) and Suzlon Energy (11.93 million).