Sensex Rises Sharply, Nifty Above 8,000 Mark

The BSE Sensex and Nifty recovered sharply from the lows hit after the Reserve Bank kept key policy rated unchanged.

As of 12.30 a.m. The Sensex traded 162 points higher at 26,759 and the Nifty was up 0.56 per cent at 8,003.45.

Rate sensitive sectors like bank, auto and realty also recovered from their day's low. The Bank Nifty was up 0.4 per cent, the CNX Auto index gained 0.95 per cent and the CNX Realty index was up 0.24 per cent.

Although the Reserve Bank kept key rates unchanged, but it said, it would cut the ceiling on bonds that must be kept under the held-to-maturity (HTM) category from the current 24 percent to 22 percent in stages starting in the bi-weekly cycle beginning in January 10, 2015. This move will improve the liquidity situation of banks further.

Among the banks Kotak Mahindra Bank gained the most, which was up over 2 per cent whereas Union Bank of India, Federal Bank and United Bank of India were up over 1 per cent each.

CNX Pharma sub-index gained 1.33 per cent as investors preferred to stay with defensives. Glenmark Pharmaceuticals gained 2 per cent whereas Sun Pharma and Ranbaxy were up over 1.5 per cent each extending their last two day's gains. Including today's gain Sun Pharma has gained over 9 per cent in last three trading sessions.

The broader markets outperformed the Nifty and Sensex as both the BSE Midcap and BSE Small cap index were up over 0.8 per cent each.

Market breadth remained positive as 345 stocks out of the 500 stocks in BSE 500 were up.