Sensex spurts as RBI desists from rate hikes

Mumbai, Apr 24: The Sensex zoomed past the psychologically-important 14,000 mark by noon today to settle at 14,100 on the Bombay Stock Exchange (BSE) following Reserve Bank of India's (RBIs) decision to keep all policy rates, the cash reserve ratio (CRR), repo, reverse repo rate and bank rates unchanged in its monetary policy announced here.

The broader 50-stock Nifty Index also surged by 60.30 points on the National Stock Exchange (NSE) to settle in the green at 4,145.40 from it's previous close of 4,085.10 points.

Following RBI's announcement, banking and auto shares, which had risen ahead of the announcement, extended their gains. Although the Central bank kept all key rates unchanged, the policy stance remains quite cautious, market analysts said.

State Bank of India (SBI) rose 3 per cent to Rs 1,094, ICICI Bank rose 2 per cent to Rs 936 and HDCF Bank gained 0.9 per cent to Rs 997.

Among public sector unit (PSU) banks, Indian Bank jumped 7 per cent to Rs 102.25, Punjab National Bank (PNB) gained 4.7 per cent to Rs 496, Bank of Baroda rose 4 per cent to Rs 234.55, Bank of India gained 4.3 per cent to Rs 191.60, Union Bank of India gained 3.6 per cent to Rs 107.

Rate sensitive housing finance firms firmed up. LIC Housing Finance gained 1.3 per cent to Rs 144.50 and HDFC rose 1.5 per cent to Rs 1,696.

Rate sensitive auto shares too extended early gains. Tata Motors gained 3 per cent to Rs 740, Maruti Udyog (MUL) rose 2.4 per cent to Rs 786, Mahindra&Mahindra gained 1.8 per cent to Rs 744 and Bajaj Auto rose 1.9 per cent to Rs 2,456.

Gujarat Ambuja Cements rose 2.5 per cent to Rs 118.

Sun TV rose 0.6 per cent to Rs 1661.90. The company's board today approved a liberal 1:1 bonus issue.

Kale Consultants gained 3 per cent to Rs 109. It has bagged a deal from Sweden-based SAS Cargo, to implement its CSP-AMBER cargo revenue accounting solution.

Bharti Airtel rose 0.8 per cent to Rs 853. The company yesterday announced the pan-India launch of comprehensive telecom and networking solutions for small and medium businesses.

Besides, China's main stock index rose 0.59 per cent in frenzied trade and set a fresh record high today, led by the steel sector, although the broad market was mixed, experts added.

UNI