RBI Effect: Sensex ends up 200pts at 10,416

The Sensex opened with a huge positive gap of 137 points at 10,352. After adding on some more gains the index displayed range-bound movement till noon deals.

After the RBI quarterly policy review was announced, in which the Reserve Bank of India Governor Y V Reddy hiked the repo and reverse repo rate by 25 basis points (bps) while leaving the Cash Reserve Ratio and Bank Rate unchanged, the index slipped to a low of 10,303.

However, as a 25bps hike in repo rates was very much expected by the markets, the index bounced back and rallied to a high of 10,443, before settling with a gain of 200 points at 10,416.