Click to play videoMumbai: The markets surged in early trade on Monday following strong global cues. The major reason for the upmove is the cut in key rates by the Reserve Bank of India. Banking, realty, auto, capital goods, telecom, oil and metal stocks gained.
At 0956 hrs IST, the Sensex rose 504 points to 10,292 and the Nifty went up 137 points to 3,022. CNX Midcap 100 rose 144 points to 3,650.
ICICI Bank, Hindalco, HDFC, Unitech, SBI, Tata Motors, Tata Steel, DLF, HDFC Bank, SAIL, Bharti, L&T and ONGC are major leaders.
The Reserve Bank of India, or RBI, has cut the repo rate by 50 basis points to 7.5 per cent with effect November 3. It has also cut CRR, or cash reserve ratio, by 100 bps in two stages to 5.5 per cent.
The first stage of CRR cut would be with effect October 25 and the second stage would come into effect November 8.
The 100-bps CRR cut will infuse Rs 40,000 crore into the system, the RBI said. The central bank will also cut SLR to 24 per cent by 100 bps from November 8 onwards.
Asian markets are trading higher. Hang Seng, Straits Times and Jakarta rose 5-8.5 per cent. Shanghai, Kospi and Taiwan went up 1-2 per cent. Japan's Nikkei is closed today for the Culture day holiday.
US stocks rose, capping the biggest weekly gain since 1974, on Friday, after JP Morgan Chase announced steps to end the housing crisis, bank lending rates declined and earnings from companies outside the financial industry expanded four times faster than the previous quarter.
On closing bell all key indices the Dow, Nasdaq and Broader S&P 500 index ended up 1.5 per cent. The Dow surged 144.32 points, or 1.57 per cent, to 9,325.01. The Nasdaq composite index rose 22.43 points, or 1.32 per cent, to 1,720.95, while ehe S&P 500 index rose 14.66 points, or 1.54 per cent, to 968.75.
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