Sensex gains 200 points; auto, tech, oil & gas lead
25 October 2011
Indian equity benchmarks have maintained their uptrend led by buying across sectors, except banks, up over 1%.
Heavyweights like Reliance Industries, Infosys, Bharti Airtel, NTPC and L&T were the leaders, rising between 2% and 3%.
The 30-share BSE Sensex jumped 201 points to 17,140.45 and the 50-share NSE Nifty rose 59 points to 5,156.95.
The Reserve Bank of India (RBI) has hiked repo rate by 25 basis points to 8.5% in today's credit policy, which was on expected lines. Apart from the rate hike, RBI also deregulated interest rates on savings bank accounts, which was negative for the banks.
"Currently, banks pay interest rate of 4% on the savings bank accounts. Post this deregulation, the interest rates on Savings bank accounts bound to move up. This can have quite serious implications on the profitability of the banking system. We have attempted to summarize in this report the underlying implications with this deregulation of interest rates on Savings bank accounts," says Jagannadham Thunuguntla of SMC Global Securities.
HDFC Bank, SBI, Axis Bank and PNB were down 3.5-4.5%.