Sensex recovers, closes up by 51 points

In a highly choppy trade, the benchmark Sensex on Friday recovered the sharp decline it suffered after the RBI announced a more-than-expected CRR hike by closing 51 points higher, as the central bank raised the growth forecast and kept the key policy rates unchanged.

The 30-share Bombay Stock Exchange barometer, which sunk below the psychological 16,000-level after the Reserve Bank raised the amount of money that banks have to park with RBI (CRR) by 75 basis points-25 bps more than the market view-bounced back to close 51.09 points up at 16,357.96 as the central bank spared key policy rates such as banks buying and borrowing rates, and raised GDP growth outlook to 7.5 per cent from 6 per cent.

In a highly volatile trade, the key index dwindled between 16,390.31 and 15,982.08 points during the sessions.

Still, for every one stock that fell there was an equal number that gained. And among the 30-Sensex counters, 17 closed with gains while 13 ended with losses.

Banking, realty and capital goods sectors- the sectors which are more interest sensitive and hence battered for long now-were the winners today.

Similarly, the wide-based National Stock Exchange index Nifty 50, after dipping below the 4,800 level, closed in the green with gain of 14.80 points to 4,882.05.

The RBI increased the cash reserve ratio to 5.75 per cent from 5 per cent but kept the benchmark interest rates unchanged while raising its inflation estimate to 8.5 per cent by March end from 6.5 per cent. It has also revised upwards its GDP estimate from a low 6 per cent to a high 7.5 per cent for this fiscal.