Sensex up by 94 points in early trade

The S&P BSE Sensex on Tuesday surged almost 100 points, while the broader Nifty50 traded above its key support level of 8,200 ahead of RBI monetary policy review to be announced later in the day.

Banking and realty stocks fired on all cylinders while global cues were largely positive.

Across the Atlantic, the Fed Chair said the central bank will not be raising short-term interest rates until there is more clarity about the health of the United States economy and its outlook.

Governor Raghuram Rajan cited higher upside risks to the inflation trajectory behind the move, but signalled that the central bank could cut rate provided strong monsoon rains dampen inflation and data are supportive.

It touched a high of 27,082.63 points and a low of 26,829.53 points in the day’s trade.

The benchmark BSE Sensex was up 80 points or 0.30 percent at 26,857 in early trade and the broader Nifty index was up 24 points or 0.29 percent at 8,224.

The central bank also retained India’s growth projection at 7.6 percent for 2016-17, refering to corporate profits and a surge in consumption.

ICICI Bank Ltd rose as much as 4.6 percent, touching a 6-week high on a fund-raising plan.

Overnight, US stocks closed higher with energy stock leading as oil rose, after comments from Fed remained positive on economy.

Among the Asian markets, Japan’s Nikkei was down by 0.37 percent and China’s Shanghai Composite Index ended lower by 0.15 percent, while Hong Kong’s Hang Seng gained by 0.40 percent.

A report by SMC Global said “Asian markets traded mixed today, with Japan shares taking a tumble, as a disappointing May jobs report in the U.S. on Friday weakened the dollar and bolstered regional currencies, including the yen”.

Out of the 30 scrips in the Sensex, 26 ended in the green and only four in the red.

S&P BSE Bankex was the top sectoral gainer and added 0.73 per cent ahead of RBI policy review.

Mid-cap and small-cap indices too made a spectacular comeback.