Commodity Online
MUMBAI: The benchmark indices recovered losses in the afternoon trade following positive sentiments prevailing after a rate cut by the Reserve Bank of India (RBI).

Sensex was trading up 81.28 points or 0.73% with a gain of close to 295 points from the day's low.



The RBI today cut its key short-term rates by 25 basis points each to shore up faltering growth in the face of the global economic slowdown. The repo rate, at which the Reserve Bank of India (RBI) infuses cash into the banking system, will be cut to 4.75%, and the reverse repo rate, at which it absorbs excess cash from banks, will be reduced to 3.25%, with an immediate effect.

However, the apex bank revised its growth estimates for the FY 2009 to 6.5% from 6.7% and 7% projected earlier, while for the current fiscal the growth targets has been estimated at around 6%.

Following the rising trend, the key sectors including oil & gas, telecom, FMCG and realty sectors witnessed heavy buoyancy. FMCG majors ITC Ltd and Hindustan Uniliver Ltd recorded gains during the day. HUL was trading up by over 1% at Rs.240.9, while Dabur India rose significantly to Rs.104.5 with a rise of over 5.5% from its previous close. ITC Ltd too recorded moderate gains with over 3% rise at Rs.190.15.

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