Sensex opens up by 33 pts

Mumbai, Nov 19 (UNI) Recovering from yesterday's huge loss, the Sensex of Bombay Stock Exchange (BSE) today inched up by 33.47 points to 8,970.67 in the opening session, from its previous close of 8,937.20, on hopes of further rate cuts by the Reserve Bank of India (RBI).

The Nifty Index of National Stock Exchange (NSE) opened steady at 2,682.75 from its last close.

The Sensex recorded the day's high at 9,153.30 and low at 8,970.67. It was trading up by 131.03 points at 9,068.23.

The Nifty recorded the day's high at 2,744.10 and low at 2,682.75. Currently, it was trading up by 46.05 points.

Buzz that the Reserve Bank of India (RBI) may announce steep rate cuts in a week or so and reports that the government has decided to inject a whopping Rs 50,000 crore for funding infrastructure projects in a bid to pump-prime the economy, triggered a rebound on the domestic bourses after a recent steep slide, a leading broker said.

The RBI is expected to announce another round of rate cuts in a week or so in an effort to ease liquidity and reduce borrowing costs to counter slowing economic growth. The apex bank is also likely to create a special repo window to allow banks to borrow up to 100 basis points of the statutory liquidity ratio (SLR) -- the percentage of deposits invested in government securities -- to make available Rs 40,000 crore for infrastructure like national highway projects.

Some other reports suggest that the government will inject Rs 50,000 crore on infrastructure projects that would be built through the public-private partnership.

The BSE Mid-Cap index jumped by 1.07 per cent to 3,092.95 and the BSE Small-Cap index rose by 0.57 per cent to 3,578.80. Both the indices underperformed the Sensex. All the 30 stocks from the Sensex pack were in the green.

Reliance Industries (RIL) jumped by 3.71 pc to Rs 1,183.05 on reports it may raise Rs 5,000 crore from the Life Insurance Corporation via 11.5 pc non-convertible debentures.

Sterlite Industries was up 4.61 pc to Rs 227.90, Grasim Industries moved up 3.11 pc to Rs 1,006.10 and Jaiprakash Associates went up 3.39 pc to Rs 70.20.

Steel stocks rose after the government yesterday imposed a 5 pc duty on imports of steel and iron products to protect domestic makers from cheaper imports. Tata Steel, Steel Authority of India, Jindal Steel&Power, JSW Steel and Bhushan Steel rose by between 0.21 pc and 2.41 pc.

Infrastructure stocks rose on hopes that the government will focus on infrastructure projects to pump-prime the economy. Gammon India, Era Infra Engineering, Hindustan Construction Company, Nagarjuna Construction Company and IVRCL Infrastructure&Projects gained by between 0.21 pc pc to 4.17 pc, brokers added.

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