The BSE benchmark index Sensex further rose by 46 points on sustained buying by funds in blue-chips led by banks ahead of the RBI monetary policy meet amid a firm global trend.

The 30-share index, which had gained 142 poins in the previous session, advanced by 46.07 points or 0.22 per cent to close at 21,251.12. It touched the day’s high of 21,302.52 points.

Similarly, the broad-based National Stock Exchange index Nifty rose 9.85 points or 0.16 per cent, to 6,313.80.

Stake sale in Hindustan Zinc

Brokers said the market sentiment improved after the Government decided to sell its stake in Hindustan Zinc which might narrow down the budget deficit.

Shares of Hindustan Zinc rose 0.15 per cent to Rs 135.20 after the Cabinet Committee on Economic Affairs had yesterday approved the sale of the Government’s residual stake.

Monetary policy review

They said the upsurge was backed by banking and interest-rate sensitive stocks on expectations that RBI may keep its policy rates unchanged in its review meeting on January 28 as headline inflation has receded.

A firm trend in global stock markets also influenced the market sentiment to some extent, they added.

Sensex stocks

Among 30 Sensex components, 15 stocks closed with gains.

Banking sector index gained the most by 1.55 per cent to 12,769.51, followed by auto index which rose 1.03 per cent to 12,239.74. Metal index rose 0.77 per cent to 9,732.54 and capital goods index by 0.64 per cent to 9,761.91.

(This article was published on January 21, 2014)
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