Sensex ends up 383 pts

Sensex has ended (provisional) at 17,322 - up 383 points. Nifty ended up 93 points at 5,192.
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(Updated at 1429 hrs)

Markets have once again gained and is now trading near its day's high. The Sensex, after dropping to a low of 16,900 post the RBI policy review, has recovered to 17,091 - up 153 points. Nifty is up 47 points at 5,145.

The Reserve Bank of India (RBI) today raised repo rate, the rate at which it lends to banks, by 25 basis points to 8.5%. However, the cash reserve ratio remains unchanged at 6% and reverse repo rate too is unchanged at 7.5%. RBI has brought down the GDP forecast from 8% to 7.6%, while retaining the inflation forecast of 7%.

The central bank has also deregulated the bank deposit (savings) rates with immediate effect, subject to certain conditions. Banks can now decide the saving rates subject to certain regulations.

The BSE IT index has held on to gains and is now up 1.7% at 5,727. The auto index has managed to recover from its lows and is now up 1.5% at 9,152.

However, the bankex continued to languish after Reserve Bank of India deregulated saving rates. BSE bankex is down 2.14% at 10,815.

Most stocks have recoeverd from the red. Banking names like HDFC Bank and SBI, however, down 3% and 5% respectively. BHEL and ONGC have slipped 1% each.

On the other hand, Sterlite has gained 4.4% to Rs 121. Mahindra & Mahindra, Larsen & Toubro and Tata Steel are up 3-4% each. Reliance is up 2% in trades as well.

BSE market breadth is negative with 1,474 stocks on the declining side while 1,139 on the advancing side.