Sensex up 67 points, automobile stocks gain


Mumbai, Aug 5 (IANS): A benchmark index of Indian equities markets Tuesday was trading 67.21 points or 0.26 percent up after the Reserve Bank of India (RBI), as expected, left key interest rates unchanged in its third bi-monthly monetary policy reviewof fiscal 2014-15.

Healthy buying was observed in automobile, healthcare, bank, information technology (IT) and capital goods scrips. However, metal and fast moving consumer goods (FMCG) sectors came under sustained selling pressure.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,817.84 points, was trading at 25,790.37 points (at 12.00 p.m.), up 67.21 points or 0.26 percent from the previous day's close at 25,723.16 points.

The Sensex touched a high of 25,831.53 points and a low of 25,654.84 points in the trade so far.

Markets seemed to have factored in the RBI move, as analysts had predicted that the key interest rates would be put on hold.

The RBI, as expected, left key interest rates unchanged in its third bi-monthly monetary policy review Tuesday.

The repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, has been left unchanged at 8 percent. 

The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent. 

The Cash Reserve Ratio (CRR) is left unchanged at 4 percent. The marginal standing facility rate and the Bank Rate is also kept unchanged at 9 percent.

The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, was cut by 0.5 percent to 22.0 percent of their net demand and time liabilities (NDTL) with effect from August 9, 2014. 

In the day's trade the S&P BSE auto index increased by 161.65 points, healthcare index gained by 97.62 point, bank index rose 73.20 points, IT index was up 35.82 points and capital goods index was higher by 29.16 points.

However, FMCG index was down 12.50 points and metal index fell 7.82 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading 18.70 points or 0.24 percent up at 7,702.35 points.

  

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Title: Sensex up 67 points, automobile stocks gain



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