Mumbai: The BSE benchmark Sensex Tuesday jumped by nearly 174 points to end the day at all-time closing high of 24,858.59 as sentiment remained positive after the RBI pleased markets by unlocking about Rs 40,000 crore of banking funds by cutting the statutory liquidity ratio (SLR).
Boosting investor sentiment, the Reserve Bank of India (RBI) also allowed foreign portfolio investors to participate in the domestic exchange traded currency derivatives markets.
Brokers said eight core sector industries posting a 4.2 percent growth in April also buoyed markets..
The 30-share BSE barometer resumed the day better on firm Asian cues and moved erratically before settling at 24,858.59, a gain of 173.74 points or 0.70 percent from its last close.
As per market expectations, the RBI kept the key policy rates unchanged in the second bi-monthly monetary policy review 2014-15. The central bank reduced SLR by 0.50 percent. This is the first policy review by the RBI since the new government under the leadership of Prime Minister Narendra Modi took over at the Centre.
Bank counters came under selling pressure, while rate sensitive realty index jumped 3.15 percent.
It was metal stocks which hogged the limelight after surveys showed China's factory and services sectors had their best showings in many months in May.
Tata Steel zoomed 6.69 percent, followed by Sesa Sterlite which jumped 6.53 percent.
"RBI pleased market with SLR cut which is huge positive for realty and banks. The SLR cut has come at the right time. It shows that there is good synergy between The Finance Minister and RBI.
"Market has taken the same positively....More and more inflow will come in anticipation of robust budget. PSU stocks are getting more attractive after PMO decided that PSUs be brought under one umbrella," said Kishor P Ostwal, CMD, CNI Research.
The 50-share Nifty of NSE also rose by 53.35 points or 0.72 percent to settle at all-time closing high of 7,415.85.
Of the 30 Sensex stocks, 17 ended higher while 13 closed the day in the red.
Coal India at 5.29 percent, ONGC 4.40 percent, BHEL at 3.48 percent, Hindalco Ind at 3.23 percent, NTPC 3.14 percent, Hero Motocorp 2.96 percent, HDFC 1.69 percent and Reliance Ind 1.15 percent were other notable Sensex gainers.
Dr Reddy's Lab fell 3.15 percent, Gail India 2.07 percent, HUL 1.51 percent and ITC 1.16 percent.
Among BSE sectoral indices, metal rose by 5.06 percent, realty 3.15 percent, Oil&Gas 1.76 percent, Power 1.44 percent, consumer durables 1.44 percent and consumer goods 1.25 percent.
The total market breadth continued to rule firm as 1,921 stocks finished higher, 1,089 stocks ended lower and 96 ruled steady. The total turnover rose to Rs 4,084.34 crore from Rs 3,619.44 crore yesterday.
Asian stocks ended higher as concern eased about a slowdown in China, the world's second-largest economy.
Key benchmark indices in South Korea, Taiwan, Japan and Hong Kong and China ended higher by 0.33-0.91 percent, while China and Singapore eased by 0.04-0.17 percent.
European markets were also trading lower in their early trade as indices in France, Germany and UK declined by 0.13 0.35 percent.
