The benchmark Sensex on Monday regained the 10,000-point mark and surged by 544 points on heavy buying by funds as well as retailers. The rise was sparked by the Reserve Bank of India’s (RBI) announcement of a fresh set of measures to infuse more liquidity into the financial system.
The 30-share index, which gained almost 1,200 points in the past three sessions, shot up by another 549.62 points or 5.56 per cent to close at 10,337.68 on Monday on renewed buying in banking, capital goods, metal and oil and gas stocks.
The wide-based National Stock Exchange’s Nifty also rose by 158.25 points, or 5.43 per cent, at 3,044.40 points.
Marketmen said the appreciating Indian rupee, which strengthened by almost 1 per cent to 48.65 to a dollar on Monday, also impacted the trading sentiments.
The sentiments turned bullish after RBI slashed CRR, the amount which banks have to park with it, by 1 per cent to 5.5 per cent, while the repo rate, at which the central bank lends to banks, was cut by 0.5 per cent to 7.5 per cent.
Stock analysts said the rate cut will improve the much-needed liquidity in the financial sector, triggering all-round buying by funds.
They said banking sector stocks were leading the rally, contributing major support to the Sensex. Banking sector stocks shot up by 375.33 points, or 7.49 per cent.
Among banking stocks, ICICI Bank surged by 9.23 per cent at Rs 436.20, State Bank of India rose by 7.80 per cent at Rs 1,196.05.
Besides, ACC, Bharti Airtel, Bhel, DLF, HDFC Bank, HDFC, Infosys Technologies, Satyam Computer, Reliance Industries, Reliance Infrasturcture, Reliance Communications and Ranbaxy also moved up.
The BSE Capital Goods Index shot up by 574.61 points to 7,592.22 with stocks of Bhel, Larsen and Toubro, Siemens, Gammons India and Reliance Infra rising smartly.
