The key equity benchmark index Sensex appraised the move of Reserve Bank of India as the central bank has kept the key repo rates unchanged in its latest bi-monthly monetary policy committee meeting.
The key equity benchmark index Sensex appraised the move of Reserve Bank of India as the central bank has kept the key repo rates unchanged in its latest bi-monthly monetary policy committee meeting. BSE Sensex advanced as much as 230 points to hit the day’s high of 31,752.16 points while NSE Nifty gained 79 points to mark the day’s high of 9,938.3 points. The Reserve Bank of India’s fourth bi-monthly monetary and credit policy review comes at a time when the government is grappling with a slowing economic growth, whereas the central bank is staring at a rising headline inflation.
The Reserve Bank of India kept the repo rate unchanged on Wednesday at 6% in its latest monetary policy review as it was widely anticipated given the concerns on the rising headline inflation. The RBI’s 6% repo rate, last revised in August, is lowest in nearly seven years since November 2010. The central bank kept the policy stance neutral with the objective of limiting the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2% while supporting growth.
The stocks of heavyweight companies such as Reliance Industries, ITC, Kotak Mahindra Bank, Sun Pharma, Mahindra & Mahindra, and Tata Motors contributed the most to the index up move. Collectively these six stocks alone added about 178 points to the 30-share barometer Sensex while shares of HDFC Bank, IICI Bank, and Infosys capped the gains.
Sensex and Nifty opened marginally higher on Wednesday, later extended the morning gains in a muted trade activity as the attention of market participants was on to the outcome of the Reserve Bank of India’s bi-monthly monetary policy. BSE Sensex gained 25 points to open at 31,522.17 points and NSE Nifty too added 25 points to open at 9,884.35 points.