The 30-share BSE index rose 308.84 points or 0.63 percent to 49,510.23 points and the NSE Nifty rose 94.85 points or 0.65 percent to 14,778.35 points.
The equity benchmark Sensex rose 300 points in morning trading on Wednesday after the Reserve Bank maintained an aggressive stance to keep interest rates unchanged and support economic growth.
The 30-share BSE index climbed 308.84 points or 0.63 percent to 49,510.23 points and the NSE Nifty rose 94.85 points or 0.65 percent to end at 14,778.35.
Nestle India was up over 2 per cent in the Sensex pack, with Bharti Airtel, Reliance Industries, Asian Paints, SBI, IndusInd Bank and Dr Reddy’s taking the lead.
On the other hand, TCS, HCL Tech, Tech Mahindra, Axis Bank and HDFC Bank lagged behind.
The central bank kept the benchmark repurchase rate unchanged at 4 percent and maintained a policy stance to support growth.
RBI Governor Shaktikanta Das said that the Monetary Policy Committee (MPC) has kept the economic growth forecast unchanged at 10.5 percent for the current financial year.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The announcement of monetary policy is on expected lines without a change in policy rates and stance.”
However, by reading between the lines, one can conclude that the governor is stricter than he would have been to strengthen the central bank’s commitment to “support support and persevere to nurture recovery as necessary” .
The bond market has taken the announcement positively with a 10-year yield up to 6.12 percent.
He added, “The Governor’s assurance is also full of confidence to ensure the orderly growth of the yield curve.”
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