Indian stock market gains but banks get mixed response after RBI announcement

The BSE Sensex was trading with gains of over 200 points in late afternoon trade as investors were concerned about the health of the financial markets.

The 30-share benchmark index was trading at 36,427.97 with a gain of 200.83 points or 0.55 per cent at 1440 hrs.

The broader Nifty 50 index was at 10,972.10, up 41.65 points or 0.38 per cent.

Major gainers were Yes Bank, TCS, Infosys, HDFC, ICICI Bank and Wipro.

Losers included Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Bharti Airtel, Larsen & Toubro and Reliance, among others.

Meanwhile, the country's manufacturing sector activity improved in September amid gains in new orders, output and employment, a monthly survey said Monday.

The Nikkei India Manufacturing Purchasing Managers' Index strengthened slightly in September to 52.2, up from 51.7 in August, as sales rose from both domestic as well as foreign clients.

Market participants were concerned about liquidity conditions after the Reserve Bank of India Thursday allowed banks to dip further into statutory cash reserves in a bid to ease a liquidity squeeze afflicting the nation's money markets.

(With inputs from agencies.)