Mumbai: Stocks on August 5 surged for a second straight day on heavy buying with the benchmark Nifty soaring by 63 points to close above the 7,700 mark as investors hailed Reserve Bank's decision to leave key interest rates unchanged and marginally cut statutory liquidity ratio for banks. Auto, FMCG, financial, metal, technology, healthcare and energy stocks attracted huge buying interest. In line with expectations, the central bank maintained status quo on key policy rates, citing inflationary pressure and uncertainty over monsoon and geopolitical worries, though it hinted out a mild recovery in economic growth after prolonged sluggishness.
However, the apex bank slashed statutory liquidity ratio (SLR) by 0.5 per cent to 22 per cent, unlocking about Rs 40,000 crore into the financial system. SLR indicates minimum bond holding requirements for lenders. Though the market initially reacted negatively to policy outcome, a smart rebound towards the tail-end helped the 50-share index to post handsome gains.
Meanwhile, Asian equities retreated to multi-week lows following disappointing economic data from China amid geopolitical concerns. The Nifty fluctuated between a high of 7,752.45 and low of 7,638.05 before concluding at 7,746.55, posting a gain of 62.90 points, or 0.82 per cent, over the last close. Shares of most cement companies were in the limelight with UltraTech, ACC, Ambuja Cement and Grasim rallying 2 to 5 per cent.
The Nifty smart movers included HDFC, ONGC, Infosys Tata Motors, M&M, ITC, Bajaj Auto, Hindalco and Tata Steel. Key laggards were BPCL, HCL Tech, Bharti Airtel, Hero Moto, United Spirits, L&T, Kotak Bank, IDFC, Cipla and BHEL. Turnover in the cash segment rose to Rs 16,073.35 crore from Rs 15,101.6 crore yesterday. A total of 8,602.12 lakh shares changed hands in 66,46,635 trades, while total market capitalisation stood at Rs 88,86,531 crore.
