Mumbai: A benchmark
index of Indian equities market edged 78 points higher to close at
a 14-month high Monday on the back of capital goods, banks and
power stocks gaining after Reserve Bank of India cut the cash
reserve ratio and the opening of the retail and aviation sectors
to foreign investment during the weekend by the government.
The government Friday allowed foreign airlines to invest up to 49
percent in private domestic carriers. The market sentiments were
also lifted after the Reserve Bank of India (RBI) announced a cut
in the cash reserve ratio (CRR) that will release Rs.17,000 crore
into the economy.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange
(BSE), which opened at 18,619.90 points, closed at 18,542.31
points, 78.04 points or 0.42 percent up from its previous day's
close at 18,464.27 points.
The Sensex touched a high of 18,715.03 and a low of 18,480.54
points in intra-day trade. The BSE midcap index was up 71.12
points while the smallcap index rose 74.54 points.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange
closed 0.58 percent up at 5,610 points.
On the sectoral front, the BSE realty index was up 101.45 points
while the capital goods index was up 375.55 points and the banking
index was up 394.50 points.
Jindal Steel was the biggest Sensex gainer closing 5.99 percent
higher at Rs.394.55.
Other major gainers were ICICI Bank, up 5.39 percent at
Rs.1,060.60; SBI, up 5.36 percent at Rs.2,076.15; Larsen and
Toubro, up 4.35 percent at Rs.1,551.65; BHEL, up 4.30 percent at
Rs.213.40; and Sterlite Inds, up 4.16 percent at Rs.102.75.
Kingfisher Airlines scrip touched its circuit limit of Rs.12.97 or
an increase of 19.98 percent and closed at the same level from a
previous close of Rs.10.81.
SpiceJet also closed at Rs.38.60, an increase of 11.88 percent
before touching a high of Rs.41.30 from its previous close of
Among the retail stocks, Pantaloon Retail gained 19 percent.
IT and FMCG stocks, on the other hand, saw huge selling pressure.
ITC lost 5.48 percent to close at Rs.253.40, while TCS ended 5.03
percent down at Rs.1,340.90. Infosys also fell 2.67 percent to
close at Rs.2,562.60.
Other main losers were Dr Reddys Lab, down 4.30 percent at
Rs.1,670.95; and Hindustan Unilever, down 2.76 percent at
Asian markets closed mixed. Japan's Nikkei closed 1.83 percent up,
while Shanghai's composite index closed 2.14 percent lower. Hong
Kong's Hang Seng closed 0.14 percent up.
At closing bell here, European markets were in red. France's CAC
was down 0.60 percent and so was Germany's DAX, down 0.19 percent.
Britain's FTSE 100 was trading 0.22 percent lower.