Sensex responded more than 1,100 points a day ahead of RBI policy decision led by banks, Nifty ending above 17,200
Indian stock benchmarks bounced back strongly after two sharp losses a day ahead of the Reserve Bank of India’s monetary policy decision on Wednesday due to rate-sensitive equities. The Sensex rallied as much as 1,158 points, or 2%, and the Nifty 50 index rose above the psychologically important 17,250 at its intraday high. ICICI Bank, HDFC Bank, HDFC, Infosys and Reliance Industries are among the leaders in the 30 Sensex stocks.
The Sensex gained 887 points to close at 57,634, and the Nifty 50 index gained 264 points to close at 17,177.
Investor sentiment rose on Tuesday on hopes that the Reserve Bank of India is likely to hold off on raising key borrowing and lending rates on Wednesday, as it adopts a cautious tone amid the turmoil. spread of the Omicron coronavirus variant, economists and market participants say.
Fifty economists surveyed by Reuters in a December 1-3 poll expect the RBI to keep the benchmark repo rate at 4.00%.
Some economists feel that given the uncertainties of the new Omicron variant for the economy, it would be better to adopt a wait-and-see approach despite inflationary pressures.
Meanwhile, buying power was evident across sectors as all 15 sector measures compiled by the National Stock Exchange ended higher, led by a 3% gain. of the Nifty Bank index.
The Nifty Metal, PSU Bank, Private Bank, Realty, IT, Media, Financial Services and Auto indices also rose 1.6-3%.
Small and mid-cap stocks were also interested in buying, with the Nifty Midcap 100 index up 1.4% and the Nifty Smallcap 100 index up 1.1%.
Hindalco is the top gainer Nifty, shares are up 5.15% to 443. Tata Steel, Axis Bank, ICICI Bank, Tata Motors, Adani Ports, JSW Steel, Kotak Mahindra Bank, Titan, State Bank of India, Bajaj Finance and Maruti Suzuki also increased by 2-4 percent.
On the other hand, Britannia Industries, Cipla, Divi’s Labs, Asian Paint and Indian Oil were among the notable losers.
Market breadth was extremely positive with 2,337 shares gaining while 943 shares closed lower on the BSE.
