With the 25 basis points reduction in CRR aiding sentiment to an extent, shares of rate sensitive realty, banking and automobile sectors continue to trade firm on the major Indian bourses this afternoon.
Though key stocks from FMCG, information technology and pharmaceuticals sectors are trading notably lower due to sustained selling pressure, the benchmark indices Sensex and Nifty look set for their ninth successive close in positive territory.
The Sensex is up 69.90 points or 0.4% at 18,534.27, while the Nifty index is up with a gain of 33.30 points or 0.6% at 5610.95.
Besides the 25-basis points CRR cut, the government's decision to open up FDI in retail and aviation sectors too have contributed significantly to the market's positive show today.
Asian markets ended on a mixed note and most of the markets in the European region are trading lower at present.
Mirroring strong gains posted by key stocks in the realty space, the BSE Realty index is now up by over 6%. The Bankex has surged 3.5% with almost all bank stocks trading notably higher. The Auto index is up nearly 2%.
Several stocks from capital goods, power and oil sectors are trading higher on sustained buying support. Consumer durables stocks are having a fairly good outing as well.
ICICI Bank and State Bank of India are trading higher by over 5%. Axis Bank, BHEL, Larsen & Toubro, Sterlite Industries, Sesa Goa, Reliance Industries, Bharti Airtel, SAIL, Tata Motors, Hero Motocorp, Cairn India and Mahindra & Mahindra are all trading higher by 2% - 4%.
ITC, Tata Consultancy Services, Dr Reddy's Laboratories, Hindustan Unilever, Ranbaxy Laboratories, BPCl, HCL Technologies, Infosys, Coal India, Ambuja Cements and Power Grid Corporation are down 2% - 5.5%.