Published: Fri, April 06, 2018
Money | By Ethel Goodwin

Sensex surges 527 points as RBI keeps rate unchanged; lowers inflation forecast

Sensex surges 527 points as RBI keeps rate unchanged; lowers inflation forecast

The 30 share index lost 93.55 points (0.27 percent) to 33503.25.

After the central bank allowed banks to spread their debt trading losses of the third and fourth quarters of fiscal 2017-18, over the next four quarters, bank stocks rose yesterday as banks will be able to show higher profitability due to lower provisioning. The reverse repo rate, at which it borrows from banks and absorbs excess liquidity, will remain at 5.75 per cent The 30-share index, which had gained almost 400 points in opening trade, made further headway to quote 526.62 points, or 1.59 per cent, higher at 33,545.69 at 1440 hours.

Global markets were thrown into a fresh round of uncertainty after US President Donald Trump ramped up his trade war rhetoric with China, seeking United States dollars 100 billion in additional tariffs on Chinese imports.

Investors were not keen to expand their portfolios ahead of the corporate earnings season, brokers said. The Nifty50 of the National Stock Exchange ended at 10,325.15, gaining 196.75 points or 1.94%.

Profit booking amid subdued global cues too hit market mood.

"Focus has shifted to earnings growth which is at an early stage of revival. PSU banks and pharma stocks outperformed due to gradual accumulation and US FDA approvals", said Vinod Nair, Head of Research, Geojit Financial Services.

Major laggards were Infosys, Tata Motor, SBI, L&T, SBI, Tata Steel, TCS, Hindustan Unilever, M&M, Wipro, Kotak Bank, Hero Motocorp and Maruti Suzuki fall by 1.07percent.

Nifty Bank, Auto, Metal and Realty were up 2-4 percent.

At 03.02 p.m, the Sensex was trading up 598.15 points or 1.81% at 33,617.22 with 27 components gaining. In the Asian region, Japan's Nikkei ended 1.53 per cent higher, while Singapore gained 1.97 per cent. Hong Kong and Shanghai markets were shut today for a public holiday. London's FTSE declined 0.20 per cent.

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