Mumbai: A benchmark
index for Indian equities rallied 336 points to close January with
a whopping 11.24 percent gain -- the best monthly performance
since September 2010.
Investors were enthused after Reserve Bank of India (RBI) Deputy
Governor Subir Gokarn indicated further cuts in the cash reserve
ratio (CRR) to ease the liquidity crunch.
The RBI had slashed the CRR by 50 basis points in the third
quarter review of the monetary policy on Jan 24.
"After having done one, the possibility of another is always on
the table," Gokarn told reporters in Delhi. "That decision will be
taken when we do our mid-quarter review (March 15)."
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange
(BSE), which opened at 16,965.58 points, closed Tuesday at
17,193.55 points, 330.25 points or 1.96 percent up from its
previous close at 16,863.3 points.
In January, it has gained 1,738.63 points or 11.24 percent,
compared to the previous month's closing.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also
closed in the green at 5,199.25 points, up 111.95 points or 2.2
percent from its previous close.
Broader markets also saw gains with the BSE 500 index moving 2.06
percent up from its previous close.
Banking, realty, auto and metal stocks were among the biggest
gainers. All the 13 sectoral indices on the BSE closed in the
Prominent gainers on the 30-scrip Sensex included Hindalco, up
6.65 percent at Rs.146.65; ICICI Bank, up 5.87 percent at Rs.902;
DLF, up 5.29 percent at Rs.215.90 and Tata Motors, up 4.06 percent
Among the losers on the benchmark were Coal India, down 2.99
percent at Rs.325.65; Maruti Suzuki, down 1.1 percent at Rs.1,181
and Hindustan Unilever, down 0.76 percent at Rs.379.35.
The market breadth was positive with 1,804 stocks advancing, 1,034
on the decline and 108 unchanged.
According to data available with the Securities and Exchange Board
of India (SEBI), foreign institutional investors sold stocks worth
$16.09 million Tuesday. FIIs have pumped in $2.03 billion this
Asian markets saw modest gains as traders cautiously eyed outcome
of Greece's talks with creditors on bringing down its debt burden.
The Japanese Nikkei nudged up 0.11 percent and closed at 8,802.51
points, while Hong Kong's Hang Seng gained 1.14 percent to end at
The Chinese Shanghai Composite index moved up 0.33 percent and
closed at 2,292.61 points.
European markets were ruling in the green.
Britain's FTSE 100 was ruling 0.97 percent up at 5,726.35 points.
The German DAX was similarly trading higher at 6,509.93 points, up
The French CAC 40 was trading 1.27 percent higher at 3,307.1