Sensex Gains 200 Points In Early Trade

The BSE Sensex rose nearly 1 per cent after the Reserve Bank of India (RBI) cut an overnight interest rate on Monday, 7 October, further unwinding extraordinary measures taken to defend the rupee as pressure on the embattled currency eases.

The Nifty was trading 1 per cent higher while the BSE Sensex gained nearly 1 per cent at 1005 am.

Bank stocks, especially those more dependant on short-term funding, surged after RBI's rate-cut action. Yes Bank surges 6.5 per cent while Axis Bank gains 2.6 per cent.

Among non-banking financial companies, IDFC is up 1.9 per cent while Housing Development and Finance Corp gains 0.47 per cent.

(Reuters)