Sensex up by 190 pts ahead of monetary policy

Mumbai, July 31: | Updated: Jul 31 2007, 19:16pm hrs
The stock markets surged strongly by a whopping 190 points during morning trading ahead of the release of the quarterly monetary policy by the Reserve Bank of India (RBI) at noon.

The Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) rallied sharply to a high of 15,450.86 within minutes of resumption of trading, netting a rise of 189.95 points.

However, the Sensex was quoted at 15,431.83 at 10.30 am from Monday's close of 15,260.91 as traders booking profits at higher levels.

Similarly, the S&P CNX Nifty of the National Stock Exchange (NSE) jumped by 45.55 points to 4,495.60 from last close of 4,440.05.

Bank shares continued to be in the limelight following indications that the RBI may not change the interest rates.

Taking a cue from the RBI statement that pre emptive monetary measures since mid-2004 accompanied by fiscal and supply-side measures helped contain inflation, market players heavily covered bank shares during morning trading.

The Bankex, which gained 134.95 points on Monday, spurted to 8,167.64 points, netting a rise of 112.50 points over Monday's close of 8,055.14.