RBI Monetary Policy effect: Indian markets close 91 points up; bank stocks gain

BSE Sensex jumped over a 100 points as soon as new Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) announced 25 basis points cut in its repo rate. 

However, Sensex gave up some gains and closed at 28,334.55 points, up 0.32% while Nifty 50 closed at 8776.15 up by 31 points or 0.36% on Tuesday. 

The 30-script index was positive with 21 advances and 9 declines, while that of 50-script index witnessed 34 advances and 16 declines and 1 remaining unchanged. 

Banking stock surged after facing pressure from investors in the early tradings. Investors cheered the index right after the policy was announced. 

Nifty Bank ended at 19672.70, above 83.65 points or 0.43%.  Majority of PSU banks were positive as compared to private banks after the announcement. 

On Nifty Bank index top gainers were - Canara Bank at Rs 332.50 up by 4.13%, followed by Bank of India at Rs 119.20 above 2.41% and State Bank of India at Rs 261 higher by 2.23%. 

Both IndusInd Bank and Axis Bank were top losers on Nifty Bank index by closing below 0.53% at Rs 1222.40 and Rs 546.25 respectively. 

Top gainers on BSE were - ONGC at Rs 273.75 above 5.21%, followed by Gail India at  Rs 402.25 soaring by 4.87%. 

Other gainers were Tata Steel, Tata Motors, Cipla,  Bharti Airtel, Adani Ports and ICICI Bank closing positive between the range of 1% - 2%. 

Top losers were - Coal India at Rs 321.10, sinked 2.06%, followed by Mahindra & Mahindra at Rs 1417.90 down 1.74% and Larsen &Toubro at Rs 1448.90 below 1.43%. 

This would be the fourth bi-monthly policy and first of Urjit Patel as RBI governor. This policy was not as per analyst expectations.