Indices advance as ITC, banks lead recovery

Mumbai: Stock markets closed higher on Friday after the Reserve Bank of India kept its benchmark interest rate unchanged as expected and proposed allowing banks to lend to Real Estate Investment Trusts (REITs) with certain prudential safeguards to deepen the financing pool for the real estate sector.

Helped by fag-end buying, the 30-share BSE Sensex advanced 266.47 points or 0.32 per cent to settle at 83,580.40 in a volatile session. From the day's low of 82,925.35, the benchmark jumped 655.05 points at the end of trade.The 50-share NSE Nifty climbed 50.90 points or 0.20 per cent to end at 25,693.70.

The Reserve Bank of India kept its benchmark interest rate unchanged on Friday, as expected, as inflation remained at manageable levels and growth concerns eased following increased government spending in the Budget and reduced tariff pressures after a trade deal with the United States.

The central bank's six-member Monetary Policy Committee (MPC) voted unanimously to keep the repurchase or repo rate at 5.25 per cent. RBI retained its neutral policy stance, signalling that it is likely to remain on hold for now.

From the Sensex firms, ITC jumped the most by 5.09 per cent.Kotak Mahindra Bank, Hindustan Unilever, Bharti Airtel, Bajaj Finance, Power Grid and Bajaj Finserv were among the other major gainers.Tata Consultancy Services, Tech Mahindra, Adani Ports, Asian Paints, Eternal and HCL Tech were among the major laggards.

Among sectoral indices, BSE FMCG jumped the most by 2.05 per cent, followed by telecommunication (0.91 per cent), power (0.64 per cent), realty (0.63 per cent), energy (0.45 per cent), consumer durables (0.44 per cent0 and capital goods (0.41 per cent).