Reserve Bank’s monetary review swings the market, Sensex jumps 1,016 points, Nifty crosses 17,400 points
Highlights
- RBI’s decision strengthened the market
- Sensex closed with a gain of 1,016 points
- Nifty also closed at 17,469.75, up 293.05 points
Mumbai. The Sensex closed with a gain of 1,016 points on Wednesday, amid firmness in the market on the announcement of the Reserve Bank to keep key policy interest rates unchanged. Global markets witnessed positive sentiment with some reports of this form of the virus being less lethal than Delta amid fears about Omicron. Apart from this, the Reserve Bank of India’s (RBI) decision to keep key policy interest rates stable also strengthened the market.
The BSE 30-share Sensex closed at 58,649.68, up 1,016.03 points or 1.76 per cent at the end of trading. Similarly, the Nifty of the National Stock Exchange also closed at 17,469.75, up 293.05 points or 1.71 per cent. Among the companies included in the Sensex, Bajaj Finance was the biggest gainer with a gain of nearly four per cent. Shares of Maruti Suzuki, SBI, Bajaj Finserv, Sun Pharma and Asian Paints also closed with gains. On the other hand, Kotak Mahindra Bank and PowerGrid shares suffered losses.
S Ranganathan, Head of Research, LKP Securities said, “The RBI’s decision to keep interest rates stable along with positive global cues also kept the bulls active.” . Smallcap and midcap companies also contributed to this rally. RBI’s Monetary Policy Committee has announced to keep the repo rate at 4 percent. In such a situation, the shares of companies sensitive to interest rates started trading in the green mark. Along with this, RBI has also kept its growth forecast at 9.5 percent in the year 2021-22.
In other Asian markets, Shanghai, Hong Kong, Seoul and Tokyo closed with gains. However, the condition of European markets was not good. Most of the European markets were in losses in the afternoon session. Meanwhile, international benchmark Brent crude was trading 0.60 per cent higher at $75.89 per barrel.
