Sensex closes above 17k-level after 10 weeks

The BSE benchmark Sensex on Wednesday gained 81 points to close above 17,000-point level after 10 weeks on positive investor sentiment after RBI shifted focus to economic growth in in its policy review on Tuesday.

The Bombay Stock Exchange 30-share index Sensex added 81.41 points to close at 17,077.18, matching the highest level seen on November 14.

On similar lines, the National Stock Exchange index Nifty rose by 30.95 points to 5,158.30.

Traders said investors confidence got a boost after the Reserve Bank of India yesterday reduced the cash reserve ratio (CRR) for the first time since 2009, signaling to banks that they cut interest rates.

The Sensex had gained 244 points on Tuesday as well.

Buying activity picked up also on account of investors covering their pending positions created on the last day of current month settlement in the derivatives segment.

Reliance Industries rose by 0.89 per cent to Rs 790.10 and Infosys by 1.51 per cent to Rs 2,659.75.

Banking sector stocks rose on expectations that the RBI move would boost revenue of lenders.

HDFC jumped 1.12 per cent to Rs 708.30 and State Bank by 0.75 per cent to Rs 2,056.60.

The metal sector index gained the most, 1.79 per cent, followed by auto index at 1.15 per cent, IT sector index 1.06 per cent, oil and gas 0.57 per cent and banking index 0.33 per cent.

Stock markets will remain closed on Thursday on account of 'Republic Day.'