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Markets rise on CRR cut, Sensex closes tad below 17,000

Mumbai: Indian equities markets rose Tuesday with investors cheering an unexpected cut in the cash reserve ratio (CRR) by the Reserve Bank of India.

A benchmark index, however, slipped from the day’s high to close just below the 17,000-mark.

After nearly two years of tight check on money supply to tame inflation, the RBI took steps to infuse more liquidity in the system by reducing the cash reserve ratio by 50 basis points in a bid to help industry out of the current downturn.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,806.72 points, closed at 16,961.47 points (provisional), up 209.74 points or 1.25 percent from its previous close at 16,751.73 points.

The Sensex had soared more than 298 points to an intra-day high of 17,050.32 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also rose to close at 5,113.9 points — up 1.34 percent or 67.65 points from its previous close.

Broader markets also moved up with the BSE 500 index ending 1.35 percent higher from its previous close. The BSE midcap index closed 1.29 percent up and the BSE smallcap index gained 0.61 percent.

All 13 indices on the BSE ended in the green. Banking stocks led the gainers list followed by capital goods, metals and realty stocks.

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