The Hindu : Business : Sensex gains further on anti-inflationary policy

Online edition of India's National Newspaper
Wednesday, Jul 26, 2006

Business

Business

Sensex gains further on anti-inflationary policy

MUMBAI: Buoyed by a positive turnaround in global markets and the Reserve Bank's anti-inflationary credit policy review, the Bombay Stock Exchange's Sensex advanced higher for the second straight day on Tuesday and added 200 points.

Bank shares hogged the limelight for another day as RBI raised the key short-term interest rates by 25 basis points in its quarterly review of Monetary Policy for this fiscal.

The BSE 30-share sensitive index began with a wide upward 136-point gap at 10351.75 and gradually moved upwards to the intra-day high of 10443.05 before closing the day at 10415.61 from Monday's close of 10215.37, a net gain of 200.24 points or 1.96 per cent.

On the National Stock Exchange, the S&P CNX Nifty advanced by 54.65 points or 1.83 per cent to 3040.50.

The RBI's move is expected to lead to an increase in bank interest rate on loans, helping banks to strengthen their bottomlines in the current financial year.

Despite pressure from rising global crude prices, the apex bank kept the projected economic growth unchanged at 7.5-8 per cent and inflation rate at 5-5.5 per cent for the fiscal.

PTI

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