Sensex breaches 10K, up by 421 pts

Mumbai, Nov 3 (UNI) The benchmark Sensex of Bombay Stock Exchange (BSE) today crossed 10K mark to open at 10,209.37 points, up by 421.31 points, from its pevious close of 9,788.06 following a surprise rate cut by the Reserve Bank of India over the weekend and firm Asian stocks.

The Sensex recorded high at 10,358.63, advanced by 570.57 points, during the intra-day. At present, it is trading up by 421.57 points at 10,209.63.

However, the Nifty of National Stock Exchange (NSE) was steady in the opening session at 2,885.40 points. The Nifty was quoted high at 3,004.20, with a massive gain of 118.60 points, from its last finish of 2,885.60 points.

Rate sensitive banking, realty and auto firms spurted. The RBI had last Saturday unexpectedly cut its repo rate or main short-term lending rate by 50 basis points to 7.5 pc and the banks' cash reserve ratio (CRR) by 100 basis points to 5.5 pc. The RBI also cut banks' statutory liquidity ratio (SLR) by 100 bps to 24 pc of their deposits with effect from November eight.

Asian stocks edged up for the fifth straight day today on hopes that the policy efforts, adopted so far to dampen the impact of the financial crisis, would ultimately take hold, though data still painted an ugly picture of the global economy. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea rose between 0.8 pc and 5.3 pc.

The market breadth was strong. Reliance Industries (RIL) jumped 3.38 pc to Rs 1,417.10. India's largest private sector bank by net profit, ICICI Bank, jumped 8.93 pc. HDFC Bank gained 5.37 pc. Auto stocks advanced as Tata Motors, Hero Honda Motors, Mahindra&Mahindra gained between 3.61 pc and 10.59 pc. Indiabulls Real Estate, DLF and Unitech rose between 4.26 pc and 7.83 pc. IT exporter by sales, Tata Consultancy Services (TCS), edged up by 3.82 pc, Bharat Heavy Electricals (BHEL) jumped by 5.34 pc.

Crude oil rose in New York on signs that the fuel demand will increase after the US, India and China cut interest rates to prop up economic growth and amid speculation that the OPEC countries will cut output for the second time by yearend. Crude oil for December delivery gained as much as by USD 1.16 to USD 68.97 a barrel.

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