Record high for Sensex as Nifty crosses 21,000 after RBI policy decision
Share Market: The Sensex, India's benchmark index, surged to an all-time high, while the Nifty, a key indicator of the National Stock Exchange, surpassed the significant 21,000 mark after the Reserve Bank of India (RBI) announced its policy decision.
On a bullish note, the 50-share benchmark index opened strong, hitting 21,006.10 following a brief pause in trading the day before. The rally continued into the afternoon, with the Nifty breaching the psychological milestone of 21,000. Simultaneously, the Sensex marked its historic intraday peak, reaching an impressive 69,888.33 after the RBI opted to maintain policy rates in alignment with market forecasts.
Amidst this market surge, approximately 25 stocks saw gains, while 24 others showed a contrasting negative trend. In the broader market spectrum, various indices displayed positive movements. The Nifty Midcap Select index rose by 0.1 per cent to 9,975.60 points, Nifty Bank saw a 0.48 per cent increase, and Nifty Financial Services climbed to 21,133.30 points.
In the Nifty index, notable gainers included LTIMindtree (3.17 per cent), JSW Steel (2.97 per cent), HCL Tech (2.96 per cent), HDFC Bank (1.41 per cent), and L&T (1.32 per cent). Conversely, Adani Ports experienced the most significant decline of 1.55 per cent, followed by Bajaj Finance (down 1.37 per cent), Adani Enterprises (down 1.23 per cent), and Hero MotoCorp (down 1.18 per cent).
Analyzing the market movement in light of the RBI's decision, Gaurav Dua, Head of Capital Market Strategy at Sharekhan by BNP Paribas, expressed that the monetary policy remained in line with expectations. He noted the MPC's emphasis on transitioning from accommodation to curb inflation while acknowledging the risk associated with excessive tightening amid a global economic slowdown. Dua remained optimistic about the equity market's performance, particularly in real estate, banking, consumer goods, and engineering sectors.
During the bi-monthly monetary policy announcement, RBI Governor Shaktikanta Das disclosed the MPC's unanimous decision to maintain the repo rate at 6.5 per cent. Das highlighted the MPC's commitment to actively pursue disinflationary measures. Additionally, the growth forecast for the current fiscal year was revised upward to 7 per cent from the previous 6.5 per cent, with the central bank projecting Consumer Price Index (CPI)-based retail inflation at 5.4 per cent for the same period.
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- With inputs from agencies
