Sensex gains around 200 points; RBI further cuts short-term rates

Reuters Market Eye - The BSE Sensex rose nearly 1 percent on Tuesday after the the Reserve Bank of India (RBI) cut an overnight interest rate on Monday, further unwinding extraordinary measures taken to defend the rupee as pressure on the embattled currency eases.

The Nifty was trading 1 percent higher while the BSE Sensex gained nearly 1 percent at 1005 am.

Bank stocks, especially those more dependant on short-term funding, surged after RBI's rate-cut action. Yes Bank Ltd surges 6.5 percent while Axis Bank Ltd gains 2.6 percent.

Among non-banking financial companies, IDFC Ltd is up 1.9 percent while Housing Development and Finance Corp gains 0.47 percent.

 

(Reporting by Abhishek Vishnoi)