By NNN-PTI,
Mumbai : Bourses in India began to respond to the government’s measures as the benchmark Sensex Monday bounced by over 500 points to regain 11,000-mark at 1130 hrs on fairly heavy support prompted by expectations of fresh steps to address the liquidity problems.
Finance Minister P Chidambaram expected this morning the market to take cues from positive developments in three east Asian and Australian equity markets.
“Our banks are ready and willing to provide credit. Suitable advisories are being issued to the banks. We will respond swiftly according to the needs of the situation.
“We are are working on measures that will infuse liquidity, make credit intermediation smoother and increase the confidence of depositors and investors. We hope to be able to announce them shortly,” he said.
As a result, the Bombay Stock Exchange 30-share index surged by 519.09 points or 4.93 per cent at 11,046.94 at 1130 hrs from its previous close.
According to a leading broker Manoj Choraria, the CRR cut by 100 basis points has provided the much required relief rally as the liquidity will improve.
The Sensex had fallen by a huge 2,527.82 points or 19.36 per cent in the last five trading sessions.
The 50-share Nifty of the National Stock Exchange also gained 139.05 points or 4.23 per cent to 3,419 at 1130 hrs from its last close.
Bank stocks hogged the limelight lifting the BSE Bankex by 444.86 points or 8.36 per cent following Chidambaram’s assurance and the huge 1.5 per cent CRR rate cut last week.