Equity benchmark Sensex rallied 460 points on Wednesday after the RBI expectedly left interest rates unchanged and maintained an accommodative stance as the economy faces a renewed threat to growth due to the resurgence of coronavirus cases. The 30-share BSE index jumped 460.37 points or 0.94 per cent to finish at 49,661.76. The broader NSE Nifty advanced 135.55 points or 0.92 per cent to 14,819.05.
SBI was the top gainer in the Sensex pack, spurting over 2 per cent, followed by ICICI Bank, Nestle India, IndusInd Bank, M&M, Bajaj Auto and Maruti. On the other hand, Titan, NTPC and HUL were the laggards.
The Reserve Bank of India (RBI) on Wednesday kept key interest rates unchanged at record lows while pledging to buy Rs 1 lakh crore of government bonds this quarter to cap borrowing costs in a bid to support an economy facing a resurgence of the pandemic. In the first monetary policy of the 2021-22 fiscal, the central bank stuck to its accommodative stance amid concerns of rising infections that could derail the nascent economic recovery.
"In line with expectations, RBI has maintained status quo on policy rates and reassured the financial markets on its commitment to retain accommodative policy stance till the prospects of sustained economic recovery is secured," said Gaurav Dua, SVP, Head – Capital Market Strategy, Sharekhan by BNP Paribas. Even on liquidity front the signals are dovish, he said, adding the bond market has reacted positively with the 10-year bond yield easing by 6-8 bps during the day.
"The easing of yield curves and commitment of keeping interest rate low with ample liquidity are positive for the equity markets too. The consistency and continuity in the monetary policy stance is welcome and will cheer up market sentiments," he noted. Elsewhere in Asia, bourses in Shanghai and Hong Kong ended in the red, while Seoul and Tokyo were in the positive terrain.
Stock exchanges in Europe were largely trading with gains in mid-session deals. Meanwhile, the global oil benchmark Brent crude was trading 0.37 per cent lower at $62.97 per barrel.
Read all the Latest News, Breaking News and Coronavirus News here. Follow us on Facebook, Twitter and Telegram.
Comments
0 comment