Sensex up 90 points as RBI cuts lending rate
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The BSE benchmark Sensex rose by over 90 points in late morning trade today after the Reserve Bank of India cut short-term leading rate to boost economic growth.
The 30-share index, which opened in negative zone, recovered by 90.27 points, or 0.45 per cent, to trade at 20,193.62 soon after RBI announced cut in short-term
lending rate by 0.25 per cent to 7.75 per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent.
Similarly, the National Stock Exchange Nifty index traded above 6,100 points level by rising 31.05 points, or 0.51 per cent, to 6,105.85 points.
Brokers said a cut in short-term lending rate by 0.25 per cent to 7.75 per cent after a gap of nine months, and reducing Cash Reserve Ratio (CRR) by 0.25 per cent to 4 per cent by the Reserve Bank brought cheer to the market as the move would reduce the cost of home, auto and corporate loans and improve liquidity in the market.
The upsurge was mostly led by interest-rate sensitive stocks such as banking, realty and auto.
Realty major DLF was trading higher by 1.03 per cent at Rs 269.70, while largest state-run, State Bank of India gained 1.12 per cent to trade at Rs 2,518. Private lender ICICI Bank rose by 1.34 per cent to Rs 1,206.50.
Among the sectoral indices, the BSE realty index gained the most by rising 1.55 per cent to 2,258.27 points followed by Banking index, which gained 1.22 per cent at 14,842.68 points.