Markets have cheered the announcements by the RBI, and witnessed a strong trading session, which took the Nifty well above the 5100 mark. Stocks from the rate sensitive sectors have all gained significantly in today’s trade.
The Nifty managed to close at 5127, up by 81 points or 1.6%
The RBI earlier in the day decided to keep the policy rates untouched and announced a decision to cut the CRR by 50 basis points. This move would inject liquidity into the system. Analysts also see the move as an indication that taming of the inflation has been carried out, and the economy is set to grow ahead now.
Banking, Financials and Capital goods stocks were in full demand for the trade today. L&T was the top gainer on the Nifty with nearly 6% gains recorded. IDFC followed it by seeing a gain of 5.5%. SBI crossed the 2000 mark after a long time, registering a gain of 5.3%. JPAssociates closed with 4% gains. ICICI Bank was up 3.3%.