Sensex, Nifty jump over 3 per cent on RBI stimulus move; Auto, banking stocks surge

Equity benchmark Sensex surged nearly 1,000 points led by gains in banking, auto, healthcare, Oil&Gas and IT stocks. The RBI stimulus to banking, NBFCs, MFIs and SMEs helped to boost the sentiment for the market and the banking sector. Banking, Auto and Financial Services were the signifcant gainers that rallied up to 6 per cent.

Positive cues from the global markets too enthused investor sentiment here.

Earlier, the RBI announced a host of measures, including injecting Rs 50,000 crore via targeted long-term repo operations, so that banks provide more  liquidity, specifically to small and mid-sized non-banking finance companies (NBFCs) and micro-finance institutions.

The RBI also cut the reverse repo rate from 4 per cent to 3.75 per cent, so that banks are nudged to lend more, instead of deploying funds with the central bank.

The 30-share BSE barometer registered 986.11 points or 3.22 per cent higher at 31,588.72. Similarly, the NSE Nifty zoomed 298.20 points, or 3.32 per cent, to 9,291.00.

Major gainers today were Axis Bank, ICICI Bank, IndusInd Bank, Maruti, TCS, Reliance, Bajaj Finance and Kotak Bank, which rose between 4 per cent and 14% on the BSE.