The Indian benchmarks ended the day on a firm note on October 29, 2013. After hawkish statement yesterday, RBI gave in line policy of 25 bps hike in repo, 25 bps cut in MSF and unchanged CRR which was taken positively while markets chose to ignore the hawkish tone of RBI. Since last few days concerns of 50 bps repo hike were running high hence shorts came to cover once policy was announced. Nifty spread expanded to +12 from parity at open. Due to covering in Oct series, Nifty roll spread fell to +48 points from +55 points at open. Nifty reversed sharply from 20DMA which it has been holding since last two months. It was Bank Nifty where all action was visible. Bank Nifty recovered ~6% from low made at time of policy & now closed at Sep'13 highs. ICICI Bank sharply cut through 200DMA, first time since June'13. Indus Ind & Axis Bank reached 200DMA. All relatively defensive sectors viz. IT, Pharma, FMCG underperformed. Maruti showed biggest single day rally since Jan'12 after good results. Tata Steel rallied sharply from its 200DMA. Side markets underperformed.
Further, the market breadth closed positive as seven stocks were seen advancing against six declining stocks.