After flipping between positive and negative zones, the benchmark BSE Sensex today settled with a marginal rise of 12 points at 28,516.59, after RBI keeping key policy rate unchanged failed to cheer investors.
The 30-share Sensex opened firm and rose over 105 points by rallying to 28,641.08 in early trade. However, it pared gains and fell to the day's low of 28,274.36 after the RBI kept policy rate unchanged.
In its monetary policy, RBI left the short-term lending rate or repo rate unchanged at 7.5 per cent and the cash reserve ratio static at 4 per cent. The statutory liquidity ratio (SlR) has also been retained at 21.5 per cent.
"The move was widely anticipated by the markets and was discounted in current market prices," said Hiren Dhakan, Associate Fund manager at Bonanza Portfolio.
However, buying in blue-chip stocks at the fag-end helped the BSE Sensex to finish with a marginal rise of 12.13 points or 0.04 per cent at 28,516.59.
On similar lines, the 50-share NSE Nifty also moved in a wide range of 8,693.60 and 8,586.85 before ending at 8,660.30, showing a marginal gain of 0.40 points.
Major gainers on the Sensex included, Tata Steel at 4.89 per cent, SSlT 3.14 per cent, Bajaj Auto 3.03 per cent, NTPC 2.73 per cent, Bharti Airtel 2.03 per cent, M&M 1.92 per cent, Hindalco 1.67 per cent and Tata Power 1.62 per cent.
Among banking stocks, Axis Bank at 1.69 per cent was the biggest loser followed by ICICI Bank at 1.20 per cent and SBI 0.97 per cent.
Sectorally, realty index topped the worst performer list by falling 1.62 per cent, followed by bankex shedding 0.71 per cent and healthcare losing 0.19 per cent.
"The concerns with respect to normalisation of Fed policy have been dissipated for the time being due to likely postponement of the tightening of the policy rates," said Hitesh Agrawal, Head Research of Reliance Securities.
Asian markets ended higher following overnight gains in the US stocks. Key benchmark indices in China, South Korea, Japan, Singapore and Taiwan rose in the range of 0.37 per cent to 2.52 per cent. Stock market in Hong Kong remained closed today for Ching Ming Festival.
Foreign portfolio investors (FPIs) bought shares worth Rs936.81 crore yesterday, as per the provisional data.