Equity benchmark Sensex surged to a great extent on Thursday’s closing after the Reserve Bank kept the policy rate unchanged and lowered the inflation forecast. In the money policy review, RBI kept the key policy rate unchanged at 6% for the fourth successive time since August 2017, in view of uncertainties surrounding inflation.
The repo rate, at which the RBI lends short-term money to banks, will keep on staying at 6% while the reverse repo rate, at which the Central Bank borrows from banks and absorbs excess liquidity, will remain at 5.7%. The RBI also stated that India’s economic growth rate is likely to make stronger to 7.4% in the current fiscal, from 6.6% in 2017-18, owing to revival in investment activity.
The NSE Nifty settled 196.75 points, or 1.94% higher at 10,325.15, whereas the BSE Sensex jumped 577.73 points or 1.75% to 33,596.80. Positive global signals, on account of trade war worries between the US and China faded, also bolstered trading sentiment.
Nifty Bank index rose 2.88% to 24,824 after the RBI kept policy rates unchanged and maintained its neutral stance. Shares of Bank of Baroda, SBI, Kotak Mahindra Bank, PNB, Yes Bank advanced in Nifty bank Index.
On NSE, over 48 stocks closed in the green in the Nifty50 pack, with Hindalco which gained the most at 6.52%, followed by Vedanta 5.56%, SBI up 5.46% and Bajaj Finserv 5.19%. On the other hand, shares of Cipla fell 1.72% and Bharti Airtel cracked 0.27% each.