Indian equities open in green again on rate cuts, global cues

Mumbai, Oct 1 (IANS) The momentum generated by Reserve Bank of India Governor Raghuram Rajan by lowering interest rates by high-then-expected 50 basis points, appeared to be having a positive impact for the third successive day on Indian market indices, that again opened in the green.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 26,344.19 points and some half-hour into trading, it was ruling at 26,369.63 points with a gain of 214.80 points or 0.82 percent over the previous day’s close at 26154.83 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading higher at 7,995.35 points, with a gain of 46.45 points or 0.58 percent.

The mood on Thursday was also on account of commercial banks deciding to lower their base interest rates after the central bank on Tuesday cut its own lending rate by as much as 50 basis points, as opposed to the market expectation for 25 basis points.

Analysts at Angel Broking, in a pre-open report said, Indian shares have been rising for the past couple of days due to the with a dovish outlook of India’s central bank, a firming trend of the rupee and positive global cues.

“News that India has surpassed the US and China as the biggest foreign direct investment (FDI) destination in the first half of 2015 and major improvement in India’s ranking in this year’s Global Competitiveness Index also raised hopes that the economy will likely expand faster.”

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