Markets surge after RBI cuts CRR by 50 bps

Markets have extended the gains after the RBI in the third quarter review of Monetary Policy cut the Cash Reserve Ratio (CRR) by 50 bps to 5.5%. CRR cut will infuse Rs 32,000 crore into the system.

The gains were led by banking shares like ICICI Bank, SBI and HDFC Bank, all zooming between 1-2%.

However, repo and reverse repo have been kept unchanged at 8.5% and 7.5%, respectively. RBI has kept Inflating forecast unchanged at 7%. GDP forecast has been brought down to 7% from 7.6% earlier.

At 1115 hrs, the Sensex zoomed 138 points at 16,890 and they Nifty gained 44 points at 5,090 levels.