A benchmark index for Indian equities was back in the green to rule more than 107 points higher in afternoon trade on Thursday, shrugging off a hike in key interest rates by the Reserve Bank of India (RBI) and report of a rise in food inflation.
The 30-scrip Sensex of the Bombay Stock Exchange (BSE), which opened at 19,476.93 points, was at 19,609.17 points, 107.06 points or 0.55 per cent up from its previous close at 19,502.11 points.
The Sensex had fallen to a low of 19,388.65 just after the RBI announced the rate hike in its mid-quarter review. At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was up 0.49 per cent at 5,889.5 points.
Broader markets indices were, however, ruling quiet. The BSE midcap 0.07 per cent up and the BSE smallcap index 0.36 per cent higher. The market breadth was negative with 1,341 scrips advancing, compared to 1,546 stocks declining and 121 remaining unchanged.
The RBI’s rate hike decision helped interest sensitive stocks like banking and realty, which were among the top gainers. IT and telecom scrips saw some selling. Other Asian markets ended in the red on news that Chinese banks might have to raise their capital adequacy ratio following a surge in lending, forcing a share sale by some. The Japan’s Nikkei closed on a flat note at 9,509.5 points.
Hong Kong's Hang Seng was ruling 0.21 per cent down at 21,680.79 points, while the Chinese Shanghai Composite index, closed 1.89 per cent lower at 2,602.47 points.