Nifty back above 5200 after initial reaction to RBI move

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At 9:51 hours IST, the benchmark Nifty has recovered more than 35 points, after the initial reaction to RBI's unexpected move of rate hike and turned back above the 5200 level. RBI hiked repo and reverse repo rates by 25 bps each on Friday. Experts said this hike was in-line with estimates.

Chetan Ahya, MD of Morgan Stanley said the RBI action began to address the risks emanating from a potential further rise in inflation and trade deficit. "We expect the RBI to maintain this tightening path, lifting policy rates by another 25 bps on April 20. We maintain our estimate of a cumulative repo rate hike of 100 bps in 2010," he has said.

Bharti Airtel was the leading player, gained 1.5% as it has tied up USD 8.3 billion loan for buying Zain's Africa Assets.

TCS, ONGC, Wipro, HDFC Bank, Cipla (to enter Sensex on May 3, in place of Sun Pharma), Ambuja Cements, BPCL, Grasim, Infosys, Tata Power and ACC were quite supportive. The Sensex recovered more than 150 points from day's low and was trading at 17485, down 92 points.

The Nifty was trading at 5230, down 32 points. The Nifty March future was trading with 7 points premium.

However, selling continued in banking, auto, realty, power, capital goods and metal stocks along with Reliance Industries.