The Bombay Stock Exchange benchmark Sensex today surged by about 89 points in early trade as stocks led by banking sector strengthened after the Reserve Bank of India cut its short-term lending and borrowing rates to boost the slowing economy.
The 30-share barometer moved up by 88.54 points, or 1.1 per cent, to 8,535.03 points with banking, realty and metal sectors leading the recovery.
The wide-based National Stock Exchange's Nifty rose by 18.70 points to 2,663.90 points.
Stock brokers said trading sentiments got a boost after RBI last evening unveiled a fresh monetary stimulus that slashed the rates at which it lends and borrows short-term funds from banks by half a per cent.
RBI cut Repo (overnight lending rate) by 50 basis points to 5 per cent and Reverse Repo (overnight borrowing rate) identically to 3.5 per cent with immediate effect.
Overnight rebound on the US markets and firming trends in other Asian bourses also supported the stocks, marketmen said.
Source : PTI