Sensex Opens Higher; Banking Stocks Gain After RBI Policy

Business

oi-Sunil Fernandes

By Sunil Fernandes

Published: Wednesday, October 5, 2016, 9:33 [IST]

Benchmark indices opened the day higher, even as Asian markets were trading sightly lower, following worries of a winding down of quantitative easing from the European Central Bank and gradual interest rate hikes in the US.

Bond yields across the globe also rose, following the reports on the quantitative easing slowdown. Gold on the other hand declined by as much as 3 per cent, following the reports.

However, subdued sentiments across Asia had little impact on India as markets continued to cheer the RBI rate cuts.

The Sensex was trading with gains of 97 points, while the Nifty opened higher by 22 points.

Banking stocks continued to see some buying support with both private and public sector lenders among the gainers in trade. Shares of Bank of Baroda were the biggest gainers in trade, while other stocks that gained were State Bank of India and ICICI Bank.

Among the Nifty stocks that were seeing early selling pressure were stocks like Infosys, BPCL and Mahindra and Mahindra.

Shares in Aurobindo Pharma gained after reports that the company would raise USD 500 million to fund 2 news buys.

Real estate sector stocks, which are also considered as rate sensitive stocks, were trading higher, following the RBI decision to cut interest rates.

Stocks like HDIL and Sobha were among the early gainers. Meanwhile, the rupee opened at 66.56 to the US dollar.

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