Sensex Surges 728 Points as RBI Cuts Interest Rate

Business

oi-Sunil

By Sunil Fernandes

Updated: Thursday, January 15, 2015, 15:30 [IST]

The Sensex and the Nifty surged in trade as the RBI Cut interest rates by 0.25 basis points. In what was a surprising move the central bank cut repo rates or rates at which the RBI lends money to banks. The rates were cut from 8 per cent to 7.75 per cent, which saw the Sensex surging a huge 726 points in trade.

Banking stocks saw a huge rally in trade after the rate cut with notable winners from the space being ICICI Bank, State Bank of India, Axis Bank and Punjab National Bank. But, the top gainer today was real estate major DLF, which surged a huge 10 per cent in trade along with a host of other real estate stocks on hopes that interest rate cuts could translate into better demand.

HDFC was also in the limelight following the cut and the stock rallied more than 5 per cent. Other notable winners in trade were ITC which had fallen sharply on Wednesday following reports of a likely cigarette ban on the company.

Tata Motors ended the day 2 per cent higher on reports that the company will launch small car Bolt in 100 cities simultaneously.

Shares in Bajaj Finserv's rallied after the company's Q3 consolidated net profit jumped to Rs 347.4 crore versus Rs 281.1 crore

Meanwhile, markets across Asia ended the day with gains while most of Europe was trading sharply higher.

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