The RBI maintained the repo rate for the sixth straight time. The 30-share BSE Sensex surged 120.72 points to 69,642.41 and the Nifty 46.05 points to 20,947.20. JSW Steel gained the most, followed by HCL Tech, Wipro, IndusInd Bank, NTPC, ITC, M&M, Bajaj Finserv, and HDFC Bank.
Sensex and Nifty rose on Friday (December 8) after the Reserve Bank of India revealed its monetary policy. Real estate, metal, and commodity equities bought amid Wall Street gains boosted attitudes, brokers added. The 30-share BSE Sensex increased 120.72 points, or 0.17 percent, to 69,642.41. The Nifty rose 46.05 points, or 0.22 percent, to 20,947.20.
JSW Steel led the Sensex gainers with 1.11 percent, followed by HCL Tech, Wipro, IndusInd Bank, NTPC, ITC, M&M, Bajaj Finserv, and HDFC Bank.
In contrast, ICICI Bank, SBI, Kotak Bank, and Bharti Airtel lagged.
“The market may vary for now. A consolidation around current levels is probable before the rally’s next phase. The economic undercurrents suggest a strong economy that can maintain profits growth beyond FY25. Power demand, housing demand, credit growth, and rural demand resurgence indicate a resilient economy that can keep the market buoyant, limited only by valuations. Investments in banking may be made on declines. Falling crude helps paints, tires, and aircraft, where demand remains strong “Geojit Financial Services Chief Investment Strategist V K Vijayakumar said.
Exchange data shows foreign institutional investors sold Rs 1,564.03 crore in shares on Thursday.
The 30-share index slid 132.04 points, or 0.19 percent, to 69,521.69 on Thursday.
The gauge dropped to 69,320.53 intraday. The wider Nifty fell 36.55 points, or 0.17 percent, to 20,901.15.
RBI maintains repo rate
The RBI monetary policy committee maintained a status quo on Friday, keeping the repo rate steady for the fifth time.
RBI Governor Shaktikanta Das announced, “The Monetary Policy Committee unanimously maintained the policy repo rate at 6.5%. Thus, the Standing Deposit Facility rate stays 6.25%, the Marginal Standing Facility rate and the Bank Rate at 6.75%.”
The RBI began its three-day bi-monthly monetary policy committee (MPC) meeting on Wednesday. The RBI discusses interest rates, money supply, inflation, and macroeconomic data at six biweekly meetings per year. In its October review meeting, the monetary policy committee unanimously maintained the policy repo rate at 6.5 percent for the fourth time. It has maintained the repo rate at 6.5% for four sessions. RBI lends to banks at the repo rate.
Conclusion
The RBI’s monetary policy committee maintained the repo rate for the fifth straight time. The 30-share BSE Sensex surged 120.72 points to 69,642.41 and the Nifty 46.05 points to 20,947.20. JSW Steel gained 1.11 percent the most. Before the next rally phase, the market may consolidate around current levels. The RBI maintains a status quo by keeping the repo rate at 6.5%, the Standing Deposit Facility rate at 6.25%, the Marginal Standing Facility rate at 6.75%, and the Bank Rate at 6.75%.
