Sensex touches 17k level; gains 244 pts on RBI policy

The Bombay Stock Exchange benchmark Sensex on Tuesday crossed the 17,000 mark before easing a bit to close the day 244 points up as investors cheered RBI move to cut cash reserve ratio to infuse liquidity in the system.

 

The Reserve Bank announced 0.5 percentage point cut in CRR, a move that would inject Rs 32,000 crore into the system, but left lending rates unchanged which was largely on the expected lines.

The 30-scrip Sensex crossed the crucial 17k mark before ending 244.04 points, or 1.46 per cent, up at 16,995.77.

The 50-issue National Stock Exchange index Nifty regained the crucial 5,100 level, adding 81.10 points and closed at 5,127.35.

Capital goods and banking and interest-sensitive stocks supported the rally. SBI, RIL, L&T, ICICI Bank and Hindalco made strong gains.

The capital goods sector index gained 3.30 per cent to 10,208.70, followed banking index -- 3.21 per cent at 11,286.43. The metal index rose 1.78 per cent to 11,162.65 and auto index by 1.53 per cent to 8,998.04.

Top Sensex heavyweights - RIL and Infosys gained 1.58 per cent and 0.78 per cent. The two carry around 20 per cent weight on the index.