Stocks surged higher in early trades on the Indian bourses this morning, following the Reserve Bank of India relaxing its tight monetary policy, by deciding to keep in abeyance the rule to cut SLR bonds held in HTM book to 23% and allow banks to retain SLR bonds in HTM at 24.5% of net deposits.
The BSE benchmark Sensex, which zoomed to 18,567.70 in early trade, gaining nearly 325 points in the process, is currently up 152 points or 0.8% at 18,398.04. The Nifty index of the National Stock Exchange is up 51.25 points or 0.95% at 5452.70, more than 50 points off an early high of 5504.10.
Bank stocks led the charge up north, rallying sharply on hectic buying. Mirroring strong gains posted by key stocks in the banking space, the BSE Bankex is now up more than 5.5%.
Consumer durables, capital goods, realty, PSu and power stocks are also mostly trading notably higher. Metal, automobile and oil stocks are also finding good support. Healthcare and FMCG stocks are trading mixed, while information technology stocks are weak, with the rupee's marginal upmove against the greenback dragging them down.
In early trades, the rupee was quoting at 63.19 against the U.S. dollar, against Tuesday's closing of 63.25 a dollar.
State Bank of India, ICICI Bank and HDFC Bank are up 5% - 5.5%. Yes Bank has soared nearly 16% and IndusInd Bank has spurted more than 12%, while Punjab National Bank, Canara Bank, Bank of India, Union Bank of India, Bank of Baroda and Axis Bank are trading higher by 6.8% - 8%. Kotak Bank is up nearly 4%.
Meanwhile, Ranbaxy Laboratories, Infosys, Tata Consultancy Services, HCL Technologies, Coal India, Cairn India, Ultratech Cement, BPCL, Cipla and Dr Reddy's Laboratories are down in negative territory with sharp to moderate losses.