New Delhi: New Delhi: Key benchmark indices reclaimed their key levels on Thursday following a slew of measures by the RBI to restore confidence among investors in the India growth story.
The BSE Sensex ended at 18,979.76, up 2.22 per cent or 412.21 points and the NSE Nifty ended at 5,592.95, up 2.66 per cent or 144.85 points.
Firming trends in international markets and rupee also improved the sentiment in the domestic market.
The star performer on the BSE Sensex was the banking index which gained the most and was up at 11,014.99, up 9.3 per cent or 937.65 points.
Other major performers were realty index up 5.41 per cent, consumer durables 4.54 per cent and PSU 4.5 per cent.
Those ended in the red were IT, TECk and healthcare indices. IT index was down 2.95 per cent, followed by TECk 2.19 per cent and healthcare 0.22 per cent.
On the BSE Sensex, SBI, ICICI Bank, BHEL, HDFC Bank and Coal India were the top five Sensex gainers, while the top five losers were Sesa Goa, TCS, Infosys, Wipro and GAIL.
The correction in IT and TECk stocks happened largely due to currency gaining strength and profit-booking.
Yesterday, the RBI Governor assured that Indian economy remains fundamentally strong. He said while the primary objective of the central bank remains monetary stability, inclusive growth & development and financial stability also form part of RBI's role. "The financial markets are volatile, there is domestic uncertainty. The central bank should never say never," he said.
Rajan emphasised the need on transparency, predictability in RBI's policy making. "RBI should be a beacon of stability as to its objectives," he said. There is a need for faster & broad based inclusive growth, he added.
Rajan went on to say that even as growth from large companies has slowed down, rural areas have been contributing to the economy. "RBI can accelerate financial development through inclusion," he said.
Answering reporters, Rajan said that the gloom and doom view on the Indian economy is overdone.
On the issue of new bank licences, Rajan said that a committee led by Bimal Jalan will screen bank licences. "We hope to announce new licences by January 2014." he said.
Meanwhile, European stocks rose for a second day and the bonds fell ahead of central bank meetings in the region.
Stoxx 50 was down 0.99 point or 0.04 per cent at 2,757.30, FTSE 100 was up 7 points or 0.11 per cent at 6,481.74 and DAX was down 6.16 points or 0.08 per cent at 8,189.76.
Asian stocks were up for a sixth day and emerging market currencies strengthened as central banks from Japan to Europe review the monetary policy.
Japan's Nikkei was up 10.95 points or 0.08 per cent at 14,064.80, Hong Kong's Hang Seng surged 276.03 points or 1.24 per cent to 22,602.20 and Australia's S&P/ASX 200 was down 19.14 points or 0.37 per cent at 5,142.50.
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