Mumbai: The benchmark BSE Sensex on Tuesday rose nearly 180 points in afternoon trade after the RBI kept the key interest rates unchanged and cut the statutory liquidity ratio (SLR) for banks by 0.50 percent.
After commencing higher, the 30-share index was up 179.77 points, or 0.73 percent, to trade at 24,864.62 in afternoon trade.
Similarly, the broad-based National Stock Exchange Nifty regained 7,400 mark by rising 54.50 points, or 0.74 percent, to 7,417.00.
Brokers said the RBI's decision to keep key policy rates unchanged and cut the SLR by 0.50 percent to 22.50 per cent buoyed the sentiment, triggering buying by funds and retail investors.
The central bank, in its second bi-monthly monetary policy statement for 2014-15, unlocked about Rs 40,000 crore of banking fund by reducing SLR by 0.5 percent to 22.5 percent and left the short-term lending rate or repo rate unchanged at 8 percent, and the cash reserve ratio for banks at 4 per cent to keep inflation under check.
The BSE banking index rose 0.39 percent to 17,578.00 with stocks of SBI surging 0.34 percent, Axis Bank 0.78 percent and Yes Bank 0.05 percent.
