Sensex ends 163 points higher after RBI policy keeps rates unchanged, Nifty up 49 points; IndusInd, SBI, Bajaj Finance among top gainers

Rising for the fourth straight session, market benchmark Sensex ended 163 points higher on Thursday after the RBI left the policy rates unchanged but maintained its accommodative stance to boost growth

Press Trust of India February 06, 2020 16:20:18 IST
Sensex ends 163 points higher after RBI policy keeps rates unchanged, Nifty up 49 points; IndusInd, SBI, Bajaj Finance among top gainers
  • The 30-share BSE Sensex settled 163.37 points, or 0.40 percent, higher at 41,306.03

  • Similarly, the broader NSE Nifty rose 48.80 points, or 0.40 percent, to 12,137.95

  • In the sixth bi-monthly monetary policy review of 2019-20, the central bank also kept the GDP growth rate estimate unchanged for the current fiscal at 5 percent and projected a pick up in growth to 6 percent in the next financial year

Mumbai: Equity indices marched higher for the fourth session on the trot on Thursday after the RBI left the policy rates unchanged but maintained its accommodative stance to shore up growth.

The 30-share BSE Sensex settled 163.37 points, or 0.40 percent, higher at 41,306.03. The broader NSE Nifty rose 48.80 points, or 0.40 percent, to 12,137.95.

In the sixth bi-monthly monetary policy review of 2019-20, the six-member Monetary Policy Committee (MPC) unanimously voted to keep the repurchase or repo rate unchanged at 5.15 percent while retaining its accommodative stance.

The central bank also kept the GDP growth estimate unchanged for the current fiscal at 5 percent but projected a pick up to 6 percent in the next financial year.

To boost credit growth, it also relaxed cash reserve requirement for banks for every new loan extended to loans for automobiles, residential housing and small businesses till July 2020.

Rate-sensitive financial, banking and auto stocks rallied, with BSE Finance spurting up to 1.21 percent. However, realty settled in the red.

IndusInd Bank was the top gainer in the Sensex pack, climbing 4.85 percent, followed by SBI, Bajaj Finance, Bharti Airtel, HDFC, Axis Bank and Hero MotoCorp.

On the other hand, Infosys, Titan, ITC, Kotak Bank and Asian Paints slipped up to 1.73 percent.

Broader BSE midcap and smallcap indices rose up to 0.81 percent.

Sensex ends 163 points higher after RBI policy keeps rates unchanged Nifty up 49 points IndusInd SBI Bajaj Finance among top gainers

Representational image. Reuters.

"Monetary policy action from the central bank on rates came on expected line while measures to spur growth in credit came as a surprise. Removal of CRR for loans made to specific sector and open market operations will support the economy with more credits at lower rates.

"Inflation rate is forecasted to subsequently reduce in the coming months and provide more room for RBI to cut interest rates as and when necessary," said Vinod Nair, Head of Research, Geojit Financial Services.

RBI Governor Shaktikanta Das said while the pause decision may be on expected lines, the central bank has several instruments up its sleeves, hinting at use of unconventional tools such as the ones used by the US Fed after the global financial crisis in 2008.

Global markets darted up after China slashed tariffs on some US imports.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 2.88 percent higher.

Stock exchanges in Europe too opened on a positive note.

Meanwhile, Brent crude oil futures advanced 0.25 percent to $55.42 per barrel.

On the currency front, the Indian rupee appreciated marginally to 71.23 per US dollar (intra-day).

Updated Date:

also read

Market Roundup: Sensex down by 271.07 points, Nifty closes at 15,767.55; today's top gainers and losers
Business

Market Roundup: Sensex down by 271.07 points, Nifty closes at 15,767.55; today's top gainers and losers

At the closing bell, Sensex was 52,501.98, down by 271.07 points or 0.51 percent. Nifty closed at 15,767.55 after losing 101.70 points or 0.64 percent

Market Roundup: Sensex, Nifty drop marginally amid mixed global cues; today's top gainers and losers
Business

Market Roundup: Sensex, Nifty drop marginally amid mixed global cues; today's top gainers and losers

Among the sectoral indices, Nifty Bank, Financial Services, Metal, PSU Bank, and Private Bank were trading in the red while the Nifty IT was trading high

Market Roundup: Sensex down by 333 points, Nifty closes at 15,635; today's top gainers and losers
India

Market Roundup: Sensex down by 333 points, Nifty closes at 15,635; today's top gainers and losers

The top gainers on the BSE were PowerGrid, NTPC, Titan, HCL Tech, and Asian Paint. The top laggards were Larsen and Toubro, Reliance, Bajaj Finserv, IndusInd Bank, and Bajaj Finance