Markets march higher on RBI stance; IT stocks up
The Sensex surged 362 points while the Nifty reclaimed the 11,200-mark on Thursday after the RBI left interest rates unchanged but maintained an accommodative stance to shore up growth.
Mumbai: The Sensex surged 362 points while the Nifty reclaimed the 11,200-mark on Thursday after the RBI left interest rates unchanged but maintained an accommodative stance to shore up growth.
After rallying 558 points during the day, the BSE Sensex ended 362.12 points or 0.96 per cent higher at 38,025.45. The broader NSE Nifty jumped 98.50 points or 0.89 per cent to finish at 11,200.15.
Tata Steel was the top gainer in the Sensex pack, rising 3.82 per cent, followed by Infosys, Bajaj Finance, HCL Tech, TCS, ICICI Bank and Tech Mahindra. On the other hand, M&M, Bharti Airtel, L&T and Axis Bank were among the laggards, shedding up to 0.75 per cent. Sectorally, rate-sensitive banking, realty and auto indices settled up to 1.15 per cent higher.
"Indian benchmark indices came off highs but still closed out a volatile day with gains, following RBI commentary regarding interest rate outlook. Although expectations of a rate cut were there, RBI kept rates on hold, following a rise in inflation. However, it has indicated that monetary policy will remain accommodative until growth revives," said Vinod Nair, Head of Research at Geojit Financial Services.
We believe that if inflation remains under control, there will be further policy easing from the central bank. With this event out of the way, markets are expected to turn focus back on earnings visibility and quality, he said.