Indian markets closed at record highs on Monday ahead of the RBI’s third bi-monthly policy on 2 August where the Reserve Bank of India is expected to cut interest rates and the rally in SBI shares further pushed the indices higher. NSE Nifty ended 62 points higher at 10,077.1 points and BSE Sensex settled up over 200 points at 32,514.94 points. The rate cut expectations fuelled up when India’s inflation eased to lowest in over five years in June.
Shares of State Bank of India rose as much as 4.8% to its highest level since May 19, after India’s biggest bank revised its saving bank rate, which the lender said would help it maintain its MCLR at existing rates. Riding on the SBI share upsurge the Nifty PSU bank index spiked after the announcement and rose as much as 4% to hit its highest in over two months.
Other big gainers were Power Grid Corporation of India gained 4.44% to a new 52-week high of Rs 224.2, Tata Steel rose 2.84% to Rs 567.6, Eicher Motors gained 2.84% to the record high of Rs 30,200 and L&T rose 2.74% to Rs 1,193.2. Shares of L&T, SBI, Reliance Industries, ICICI Bank and Infosys contributed the most in uplifting both the benchmark indices to close up at record highs.
The banking share indicator Nifty Bank too surged to record highs and closed above 25,000 points for the first time in the rally led by SBI (up 4.58%), Bank of Baroda (up 2.94%), PNB (up 2.42%), ICICI Bank (up 2.25%) and Federal Bank (up 1.45%). Amid the broad market indices, Nifty Midcap 50 index also closed at record highs up 0.04% at 4,792.65 points while it made an intraday high of 4,812.7 points.
Foreign Portfolio Investors’ sold equity shares worth Rs 11.45 crore at the end of the day while the debt investment stood at Rs 1,041.86 crore as per the data released by the NSDL (National Securities Depository Limited).