Sensex gains over 84 points

Mumbai: The BSE Sensex today gained over 84 points on heavy buying by funds following cut in the Cash Reserve Ratio by RBI and higher industrial production. The Sensex, which had gained 358 points in the previous session, advanced another 84.43 points or 0.48 per cent to 17,587.67.

The broad-based National Stock Exchange index Nifty rose 26 points, or 0.49 per cent to 5,359.55. The Reserve Bank had slashed CRR on Friday to infuse liquidity – around Rs 48,000 crore – in the financial system. Meanwhile, driven by strong performance of the manufacturing sector, industrial output rose to 7-month high of 6.8 per cent in January, suggesting that economic recovery may be round the corner, brokers said.

Led by SBI, bank stocks rallied on the bourses following the RBI cutting the cash reserve ratio by 0.75 percentage point to infuse liquidity in the system. The Sensex heavyweight Reliance Industries shot up 3.02 per cent. Global markets, however, exhibited a weak trend amid China`s biggest trade deficit in at least 22 years.

The capital goods sector index gained the most and rose 2.56 per cent to 10,449.24, led by Larsen and Toubro, BHEL, Siemens India and Havells India. The banking sector index was up by 1.22 per cent to 12,233.86 following a rise in stocks of SBI, ICICI Bank, Bank of India, IDBI Bank, Axis Bank and Punjab National Bank.

Auto sector shares further supported the market on reports of 13.11 per cent gain in vehicle sales in February month. The auto sector index rose by 0.87 per cent to 10,106.73 backed by better performance by Bajaj Auto, Bharat Forge, Tata Motors, Hero MotoCorp and Apollo Tyres.