Sensex up 120 points on realty, metal gains

Dec 19 2012, 01:37 IST
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SummaryAfter falling nearly 0.6% intraday, Indian benchmark indices staged a smart turnaround to end up nearly 1%, led by gains in realty, metal, capital goods and public sector banks after the central bank hinted at a pro-growth stance in the forthcoming quarter to revive economic growth.

After falling nearly 0.6% intraday, Indian benchmark indices staged a smart turnaround to end up nearly 1%, led by gains in realty, metal, capital goods and public sector banks after the central bank hinted at a pro-growth stance in the forthcoming quarter to revive economic growth.

Amid a volatile session, the 30-share Sensex advanced 120.33 points or 0.63% on Tuesday to close the day at 19,364.75, while the Nifty settled 38.90 points or 0.66% higher to end at 5,896.80 even as the Reserve Bank of India (RBI) kept policy rates unchanged and also refrained from cutting repo rate (8%) and cash reserve ratio (4.25%), but stated that “monetary policy has to increasingly shift focus and respond to the threats to growth”.

Even broader markets witnessed recovery, with the mid-cap and small-cap indices gaining for the third successive session. BSE Mid-cap index closed the day at 7,077.37, up 36.90 points or 0.52%, whereas the BSE Small-cap index settled 43.84 points or 0.59% higher to settle at 7,431.17. Stocks like Bharti Airtel, Bhel, Tata Steel, Hindalco, Sun Pharma, Jindal Steel, SBI ended up in the range of 1% to 5%.

Experts and brokerage houses were of the view that markets will remain buoyant and the outlook remains positive as softening commodity prices and the need to revive economic growth will prompt the RBI to lower rates in January. Many domestic and international brokerages expect the RBI to cut interest rates by 50 basis points (bps) in its January policy and an additional 50 bps in the remaining part of FY13.

On Tuesday, cash market turnover was at the highest in more than six weeks. According to stock exchange data, cash market turnover on the BSE and NSE, combined, stood at R17,041.54 crore compared with an average daily turnover of R13,705.99 crore since November 1.

Barring Oil & Gas index, all sectoral indices recovered from their respective intraday lows and ended in the green. BSE Realty index was the top gainer on Tuesday, rising 2.38%.

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