Money on the markets
A maturing market amid the mayhem
The BSE Sensex shrugged off the RBI decision to keep rates steady and closed 3.8 percent higher as gains in global markets triggered short covering ahead of the expiry of monthly derivatives.
In today’s policy review, the Reserve Bank left its lending rate steady at 5.5 percent and its reverse repo rate unchanged at 4.0 percent at its policy review on Tuesday. It has also kept the cash reserve ratio unchanged at 5.00 percent.
Gains were led by Reliance Industries, Infosys Technologies, NTPC, Airtel and SBI.
The benchmark indices are trading higher, as buying is seen in metals, power, IT, banking and realty stocks. Majority of the buying today was seen from domestic funds while FII’s remained net sellers, dumping $85.3 million shares.
The metal index outperformed other indices, surging 5.55 percent. Jindal Steel, Sterlite Industries and Hindustan Zinc went up 9-12.5 percent. JSW Steel, Tata Steel and SAIL were up 3-4 percent.