Sensex closes above 27,000 on RBI’s accommodative stance, Nifty settles at 8,266; Banking stocks surge

By: |
New Delhi | Updated: June 7, 2016 5:29:59 PM

The BSE Sensex and NSE Nifty closed Tuesday's session in positive terrain after Reserve Bank of India (RBI) kept key policy rates unchanged but maintained an ‘accommodative’ stance going forward amid firm global cues.

Sensex, nifty today- rbi monetary policy reviewThe BSE Sensex and NSE Nifty closed Tuesday’s session in positive terrain after Reserve Bank of India (RBI) kept key policy rates unchanged but maintained an ‘accommodative’ stance going forward amid firm global cues. (Photo: Reuters)

The BSE Sensex and NSE Nifty closed Tuesday’s session in positive terrain after Reserve Bank of India (RBI) kept key policy rates unchanged but maintained an ‘accommodative’ stance going forward amid firm global cues. Sensex rallied 232 points to close above 27,000, while Nifty settled at 8,266.

The RBI’s decision to keep key interest rate unchanged was largely in line with investor expectations and did not have much immediate positive impact. However, markets end off day’s high as participants book some of their profits in last few hours of trade.

Rally in banking and realty stocks also supported the market sentiments. The state-run SBI surged 5.4 per cent, followed by ICICI Bank 4.31 per cent on BSE.

The BSE realty index gained the most by climbing 1.70 per cent followed by banking (1.63 per cent), consumer durables (1.57 per cent), FMCG (1.35 per cent), metal (1.30 per cent), capital goods (1.23 per cent), and PSU (1.10 per cent).

“The markets rallied Tuesday to close around a 1 per cent higher for the session, banks outperformed on the back of a positive RBI policy. SBI and ICICI bank were top performers for the day with both of them closing over 4 % higher for the day,” Nikhil Kamath, co-founder & director, Zerodha, said.

In broader markets, the BSE small-cap index surged 0.96 per cent and the mid-cap 0.29 per cent.

On the sectoral front, mining and metal stocks remained on buyers’ radar amid a global rally in base metal prices after the US dollar fell to a three-week low against a basket of global currencies.

“Since the RBI policy meet was in line with expectation, the market has moved ahead along the momentum which is looking promising. Strong uptick in earnings and the expectations from the Parliament’s monsoon session when GST will be tabled is leading to India’s out performance in the EMs, ” Vinod Nair, head of research, Geojit BNP Paribas Financial Services said.

Asian and European shares too remained in a positive frame as investors speculated that the US Fed may delay its next rate hike beyond July. Japan’s Nikkei rose 0.58 per cent while China’s Shanghai index was up 0.07 per cent and Hong Kong’s Hang Seng rose 1.42 per cent. Europe was also higher in its early trade.

 

Markets through the day

3.30 pm: Sensex rallied 232 points to close above 27,000, while NSE Nifty settled at 8,266.

3.26 pm: Godrej Properties shares were trading 2.96 per cent up at Rs 340.85 after it entered into the Greater Noida real estate market with its plan to develop a golf centric township in Sector 27, Greater Noida. Sensex was trading 235.96 points up at 27,013.41, while NSE Nifty was trading 64.95 points up at 8,266.00.

2.35 pm: European stocks were up 1 percent in early trading after Wall Street’s S&P 500 had hit a seven-month high on Monday and Asia gained 1.5 percent overnight. Sensex was trading 225.07 points up at 27,002.52, while Nifty was trading 71.05 points up at 8,272.10.

2.15 pm: Nifty Bank index touched 18,000 after Minister of State for Finance Jayant Sinha said that the government will examine the capital requirements of various public sector banks (PSBs) for the current fiscal to meet credit growth and NPA provisioning. Bank of India scrip was trading 2.01 per cent at Rs 86.20, while Bank of Baroda was trading 1.53 per cent up at Rs 145.65 and SBI was trading 4.17 per cent at Rs 207.20.

2.11 pm: Sensex was trading 297 points up at 27,074.45, while NSE Nifty was trading 91.05 points up at 8,292.10. European shares advanced on Tuesday after Federal Reserve Chair Janet Yellen made no clear reference to the timing of any increase in US interest rates. Yellen’s remarks on Monday followed Friday’s dismal monthly jobs report, which raised concerns over the ability of the economy to absorb a rate hike as early as June. She called the jobs report “disappointing”, but said “one should not attach too much significance to a single report”.

1.28 pm: Metal stocks remained on buyers’ radar amid a global rally in base metal prices after the US dollar fell to a three-week low against a basket of global currencies. BSE Metal index was trading 1.26 per cent or 101.83 points up. Sensex was trading 261.68 points up at 27,039.13, while NSE Nifty was trading 84.50 points up at 8,285.55.

1.24 pm: Sensex continued to trade strong and was trading 247 points up at 27,024.45, while NSE Nifty was trading 78 points up at 8,279.05. Dhanlaxmi Bank Limited shares were trading 7.16 per cent up at Rs 21.70.

12.39 pm: Alphageo (India) stocks were trading 20 per cent up at Rs 660.10 after it was issued various Letters of Award (LoA) of contracts by ONGC for acquisition of 2D seismic Data in un-appraised on land areas of Indian Sedimentary Basins of India as a part of the National Seismic Program by March 2019. Sensex was trading 164.93 points up at 26,942.38, while NSE Nifty was trading 58.75 points up at 8,259.80.

12.06 pm: Eros International shares were trading 1.92 per cent up at Rs 209.40 after its film Housefull 3 collected over Rs 100 crore worldwide in its opening weekend at the box office. While Rs 73.02 crore was collected in India, overseas collection stood at Rs 27.01 crore. Sensex was trading 127.42 points up at 26,904.87, while NSE Nifty was trading 40.90 points up at 8,241.95.

11.35 am: Rate sensitive stocks continued to trade firm after RBI kept key rates unchanged with BSE Auto index up 0.41per cent or 79.85 points, BSE Bankex up 0.81 per cent or 163.51 points and BSE Realty index up 0.65 per cent or 9.26 points. Sensex was trading 118.98 points up at 26,896.43, while NSE Nifty was trading 38.50 points up at 8,239.55.

11.03 am: Sensex was trading 116.88 points up at 26,894.33, while NSE Nifty was trading 23.25 points up at 8,224.30 after RBI kept key rates unchanged in its monetary policy review.

10.50 am: Tata Motors shares were trading 0.34 per cent up at Rs 462.30 after Jaguar Land Rover (JLR) has reported its best ever May retail sales of 44,946 vehicles, up 18% from May 2015. This is the company’s fifth consecutive record-breaking month. The company sold 245,100 vehicles in the first five months of 2016, up 23% compared to the same period in the prior year. Sensex was trading 92.64 points up at 26,870.09, while NSE Nifty was trading 29.50 points up at 8,230.55.

10.05 am: Rising for the fourth straight day,the rupee strengthened by 7 paise to 66.90 against the US dollar in early trade at the Interbank Foreign Exchange market on sustained selling of the American currency by banks and exporters. Sensex was trading 101.30 points up at 26,878.75, while NSE Nifty was trading 30.85 points up at 8,231.90.

9.39 am: ICICI Bank stocks were were trading 1.81 per cent up at Rs 247.75 (9.39 am) after the private lender said it plans to raise Rs 25,000 crore in tranches by way of various instruments including bonds. Sensex was trading 86.04 points up at 26,863.49, while NSE Nifty was trading 27.55 points up at 8,228.60.

9.18 am: The BSE Sensex and NSE Nifty opened on firm note on Tuesday tracking global cues. Sensex was trading 81.25 points up at 26,858.70, while NSE Nifty was trading 34.50 points up at 8,235.55.  Bankex index was trading 0.63 per cent or 127.36 points up ahead of RBI policy review.

The BSE Sensex and NSE Nifty are likely to open in positive terrain on Tuesday on firm global cues. Investors will also eye Reserve Bank of India’s (RBI) monetary policy review scheduled at 11 am and maintain cautious approach.

At 8.11 am, SGX Nifty was trading 39.50 points or 0.48 per cent up at 8,274, indicating a positive beginning for Indian markets.

Asian peers, Nikkei, Hang Seng were up 0.13 per cent and 92 per cent up at 16,601.99 and 21,222.91 respectively. Shanghai was down 0.17 per cent at 2,929.13

Companies like NTPC, Vedanta, Cairn India will remain in focus today. All the banking stocks and rate sensitive will also remain in focus following RBI policy review.

On Monday, Sensex slipped 66 points to close at 26,777 as investors were on edge ahead of RBI’s policy meet and a string of upcoming events this month carrying an element of uncertainty. The broader NSE Nifty snapped its three-day winning run by
falling 19.75 points, or 0.24 per cent, to close at 8,201.05 after gyrating between 8,234.70 and 8,186.05.

The S&P 500 closed at a 7-month high on Monday as Federal Reserve Chair Janet Yellen painted a mostly upbeat picture of the economy but gave little sense of when a rate hike may be coming. Energy shares also boosted the market after oil ended higher for a third straight session. The S&P energy index rose 2 percent, leading gains in the benchmark S&P 500.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Axis Bank launches India’s first certified green bond at LSE
2Steel Strips Wheels surges 6 per cent as promoter raises stake
3Gold prices slip on muted demand, global cues