The equity benchmark Sensex rose by 460 points on Wednesday as the RBI left interest rates unchanged and maintained an aggressive stance, as the resurgence of coronovirus cases posed a renewed threat to the economy’s growth.
The 30-share BSE index jumped 460.37 points or 0.94% to end at 49,661.76. The broader NSE Nifty rose 135.55 points, or 0.92%, to 14,819.05 points.
SBI was up over 2% in the Sensex pack, followed by ICICI Bank, Nestle India, IndusInd Bank, M&M, Bajaj Auto and Maruti.
On the other hand, Titan, NTPC and HUL lagged behind.
The Reserve Bank of India (RBI) on Wednesday kept key interest rates unchanged, while pledging to buy government bonds worth 1 lakh crore of government bonds this quarter to support an economy that is facing a pandemic resurgence. Increases the cost of borrowing in a bid.
In the first monetary policy of the fiscal 2021–22, the central bank stuck due to its aggressive stance amid concerns of increased transitions, which could derail the nascent economic recovery.
Sharekhan by Gaurav Dua, SVP, Head – Capital Market Strategy BNP Paribas.
Even on the liquidity front, there are signs, he said, adding that the bond market has reacted positively to the 10-year bond yields easing by 6-8bps during the day.
“Commitment to lower yield rates and lower interest rates with adequate liquidity is also positive for equity markets. Continuity and continuity in monetary policy stance is welcome and will please market sentiments,” he said.
Elsewhere in Asia, nutrition in Shanghai and Hong Kong ended in red, while Seoul and Tokyo were in positive territory.
Stock exchanges in Europe were largely traded in mid-session deals.
Meanwhile, global oil benchmark Brent crude was trading 0.37% down at $ 62.97 a barrel.
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