Market update: BSE Sensex caps gains on selling in interest-sensitive stocks

The BSE benchmark Sensex on Tuesday surrendered most of its early gains and closed a moderate 33 points higher on selling in interest-sensitive stocks like banking and realty, after the Reserve Bank of India (RBI) kept interest rates unchanged in its bi-monthly monetary policy review.

In a highly volatile trade, the BSE sensex opened higher and rose to the day's high of 26,851.33, a jump of 254.22 points from its previous close, after RBI announced its bi-monthly policy. However, selling in banking and realty sector stocks and other blue-chip stocks, gave up most of its gain to close the session 33.40 points (or 0.13 per cent) higher at 26,630.51.

The 30-share barometer had lost 29.21 points on Monday after participants trimmed positions ahead of the RBI monetary policy review.

Similarly, the broader 50-share National Stock Exchange (NSE) Nifty, in two-way movements, finally settled 5.90 points (or 0.07 per cent) higher at 7,964.80 after touching the day's high of 8,030.90 and a low of 7,923.85.

Brokers said the central bank's decision to keep key policy rates unchanged was largely in line with investor expectations and had little impact on buying by participants but profit-booking at improved levels, minimised the gains, spread over a broad front.

The Reserve Bank, in its monetary policy, left the repo rate unchanged at 8 per cent, statutory liquidity ratio (SLR) at 22 per cent and the cash reserve ratio static at 4 per cent.

Global cues were not conducive as Asian markets ended lower after a Chinese manufacturing gauge missed estimates. European markets were also weak in early trades.

While 14 of the 30 Sensex scrips ended with gains led by Sun Pharma (up 2.77 per cent), HDFC (2.17 per cent) and Bajaj Auto (2 per cent), BHEL, Axis Bank and Hindalco remained major losers.

Sectorally, BSE Consumer Durabless index gained the most by rising 1.75 per cent, followed by Healthcare (1.35 per cent), Oil & Gas index (1.14 per cent) and FMCG index (0.66 per cent). However, Banking index shed 0.47 per cent, followed by Realty index (2.66 per cent) and Auto index (0.06 per cent).