Mumbai: The BSE benchmark Sensex showed a weekly gain of 1.63 percent after the Reserve Bank of India (RBI) cut repo rate by a sharper-than-expected 50 basis points in its annual monetary policy for 2012-13 on Tuesday to give a boost to flagging economic growth.
Sensex resumed lower at 17,047.87 and hovered in a wide range of 17,530.30 and 17,010.16 before ending the week at 17,373.84, a gain of 279.33 points, or 1.63 percent, from its last weekend's level.
The NSE 50-share Nifty also shot up by 83.40 points, or 1.60 percent, to finish at 5,290.85. The BSE Mid-Cap index rose 1.26 percent and the BSE Small-Cap index gained 1.49 percent. Both these indices underperformed the Sensex.
Interest rate sensitive auto stocks rose after the RBI cut repo rate by 50 basis points in its monetary policy review. From the 30-share Sensex pack, 24 stocks rose and only six of them declined.
India's largest tractor maker by sales Mahindra and Mahindra advanced by 4.98 percent as the government has reportedly approved the foreign direct investment (FDI) proposal worth of Rs 25.99 crore for the company's radar systems. India's largest small car maker by sales Maruti Suzuki jumped by 5.1 percent.