- Indian shares seen higher ahead of RBI rate decisionBSE Sensex up 70 pts in early trade ahead of Raghuram Rajan-led RBI policy meetRaghuram Rajan gives PM Narendra Modi a boost, keeps RBI repo rate unchanged, cuts SLR by 0.5%Highlights: RBI Guv Raghuram Rajan keeps key policy rates unchanged, but unlocks Rs 40,000 cr of bank funds
The benchmark BSE Sensex today rose nearly 180 points in afternoon trade after the RBI kept the key interest rates unchanged and cut the statutory liquidity ratio (SLR) for banks by 0.50 per cent.
After commencing higher, the 30-share index was up 179.77 points, or 0.73 per cent, to trade at 24,864.62 in afternoon trade.
Similarly, the broad-based National Stock Exchange Nifty regained 7,400 mark by rising 54.50 points, or 0.74 per cent, to 7,417.00.
Brokers said the RBI's decision to keep key policy rates unchanged and cut the SLR by 0.50 per cent to 22.50 per cent buoyed the sentiment, triggering buying by funds and retail investors.
The central bank, in its second bi-monthly monetary policy statement for 2014-15, unlocked about Rs 40,000 crore of banking fund by reducing SLR by 0.5 per cent to 22.5 per cent and left the short-term lending rate or repo rate unchanged at 8 per cent, and the cash reserve ratio for banks at 4 per cent to keep inflation under check.
The BSE banking index rose 0.39 per cent to 17,578.00 with stocks of SBI surging 0.34 per cent, Axis Bank 0.78 per cent and Yes Bank 0.05 per cent.