Sensex back in green; up 87 points as RBI cuts rate by 0.5 per cent
Mumbai: Wiping off its initial losses, the benchmark BSE Sensex recovered by almost 87 points and the NSE Nifty regained the 7,800-level as rate-sensitive stocks rallied after the Reserve Bank cut interest rate by 0.5 per cent on September 29.
The 30-share index, which had lost over 308 points in the opening trade, rebounded by 86.54 points, or 0.33 per cent, to 25,703.38 at 1115 hrs. The barometer had lost 246.66 points in the previous session.
The wider National Stock Exchange index Nifty recaptured the crucial 7,800-mark by rising 22.05 points, or 0.28 per cent, to 7,817.75. Brokers said the RBI's decision to cut repo rate by 0.50 per cent to 6.75 per cent was better than market expectations and buoyed trading sentiments. They said, however, no change in Cash Reserve Ratio (CRR), restricted the buying activity.
The BSE banking index rose 0.54 per cent to 16,699.06. On similar lines, the BSE Realty index was quoting 1.56 per cent higher at 1,362.83. While the RBI cut the repo rate from 7.25 per cent to 6.75 per cent, it left cash reserve requirement unchanged at 4 per cent.
