Sensex jumps 217 points as RBI keeps rates steady

Frontline Indian indexes have surged ahead in early afternoon trading after the central bank unexpectedly decided to keep key interest rates unchanged. Markets were expecting at least a 25 basis points hike and some other monetary policy measures to stem inflationary pressures. Other Asian markets are mixed while Europe has opened with marginal losses.

Sensex is trading higher by 217 points at 14146 at 01.10 PM IST.

Nifty is now trading higher by 60 points at 4415.

Banking stocks have soared following the RBI decision to keep rates steady. PNB is the best performer with gains of over 7.5 per cent while SBI has rallied over 6 per cent.

ICICI Bank is trading 3.5 per cent higher while HDFC and HDFC Bank have added well over 3 per cent each.

Among smaller banks, Bank of India has surged more than 8 per cent while Indian Overseas Bank and Canara Bank have rallied over 7 per cent each. Bank of Baroda, Union Bank, IDFC and Corporation Bank are the other major gainers..

Auto stocks have surged ahead, led by Maruti, which has gained nearly 5 per cent. Tata Motors has added well over 4.5 per cent and M&M is trading 2.5 per cent higher.

Zee Entertainment is now trading 5.5 per cent higher.

Tata Steel has picked up strength and has added close to 4 per cent.

Siemens has recovered after yesterday's decline and has added close to 3.5 per cent.

ACC and Gujarat Ambuja have gained over 2 per cent each.

BHEL remains the biggest loser among Nifty constituents and is trading more than 1.5 per cent lower.

Gail India is now down nearly a per cent.

Among tech stocks, Infosys and Satyam are trading with modest losses.

Glaxo and Dr. Reddy's are the only other losers among Nifty stocks, both trading with modest losses.

Mid-caps and small caps have also gained further, though overall gains are much lower than the large caps. The NSE mid-cap index is now trading with gains of 1.05 per cent. BSE mid-cap index has added over 0.6 per cent and the BSE small-cap index is trading 0.5 per cent higher.

Ramco Systems remains locked in 20 per cent upper circuit while Garware Wall Ropes, Trigyn, STI India, Eicher Motors and Magma Leasing all remain locked in 10 per cent upper circuits.

Hinduja TMT, which got listed after the de-merger of its BPO division into a separate company, is now trading at Rs590.

NRB Bearing, Indian Bank and Enkei Castalloy are the other major gainers among mid-caps and small caps.

ARO Granite, JBM Auto, Shreyan Industries, Advanta India, Zandu Pharma, Plastiblends, KEC International, KSP Pumps and Ratnamani Metals are the major losers among mid-caps and small-caps.

Thomas White Global Research, part of the Thomas White International Group, publishes capital market research for global institutions and investment banks, and is headed by Thomas White, a former managing director of Morgan Stanley Asset Management.

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