The market was trading at nearly two-month high with Sensex gaining 290 points at 17,050 and Nifty moving up by around 90 points to 5,137. The gains came with RBI's attempt to inject liquidity by cutting cash reserve ratio (amount of funds that banks have to keep with RBI) by 50 basis points to 5.5% - for the first time since January 2009. Though the repo rate, which is the rate at which the RBI lends funds to banks, remained unchanged, the easing of liquidity is expected to lead to bring in a relief in the current credit squeeze. The rate sensitive sectors which were hard hit in the morning, led the list of gainers currently. Banking, Capital Goods, Realty and Metals registered gains of over two percent. Market breadth was strong and nearly two stocks advanced against every single decline. (Pic. Source- bseindia.com)
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