RBI’s accommodative stance supports equities; Sensex, Nifty settle high (2nd Ld)

India’s key benchmark equity indices — S&P BSE Sensex and NSE Nifty50 — settled in the green on Thursday.

The RBI keeping the repo rate unchanged in its latest monetary policy meeting and maintained an accommodative stance going ahead supported the broader market indices.

The RBI’s Monetary Policy Committee (MPC) maintained the repo rate, or short-term lending rate, for commercial banks, at 4 per cent and stance accommodative to give a push to economic activity.

Thus, Sensex settled at 58,926 points, up 0.8 per cent or 460 points from the previous close, Nifty at 17,606 points, up 0.8 per cent or 142 points from the previous close.

Among the sectoral indices, barring Nifty PSU bank and auto, all other indices settled on a positive note.

Nifty bank rose one per cent, financial services, 1.2 per cent, IT one per cent, media 1.7 per cent, metal 1.2 per cent, and realty 0.9 per cent, NSE data showed.

Among specific stocks, ONGC, Tata Steel, Infosys, SBI Life and HDFC Bank were the top five gainers, rising 3.6 per cent, 2.0 per cent, 2.0 per cent, 1.9 per cent, and 1.7 per cent, respectively.

Maruti Suzuki, Indian Oil Corporation, Shree Cements, Ultratech Cement, and Adani Ports were the top five stocks that declined during the session.

“The domestic market maintained its upward momentum aided by strong global cues and positive RBI policy. Though the market expected RBI to moderate its policy tone, the central bank surprised with a super dovish statement by maintaining its accommodative stance, modest inflation forecast and GDP growth of 7.8 per cent in FY23,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Global market rallied ahead of the release of the US inflation data backed by healthy earnings results.”

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