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RBI keeps rates unchanged as Sensex, Nifty rise

Indian equity benchmarks extended gains on Friday after the central bank kept key interest rates unchanged as expected, while traders waited for their comments about liquidity normalization.

At 11:27 am, the NSE Nifty 50 index was up 0.66% at 17,906 and the benchmark S&P BSE Sensex was up 0.63% at 60,038.29.

The blue-chip Nifty 50 and Sensex have risen nearly 10% since the central bank’s policy meeting in August, hitting record highs on easing concerns about a third wave due to rapid vaccination.

Following the verdict, the country’s benchmark 10-year bond yield fell to 6.28%, while the Indian rupee slipped to 75.15 against the dollar.

“We are relieved by the fact that inflation is turning more favorable than expected,” RBI Governor Shaktikanta Das said in his policy address.

Some analysts had indicated a slim possibility of the Monetary Policy Committee providing an indicative hike in the reverse repo rate.

Meanwhile, shares of Tata Consultancy Services were up 1.42 per cent from the September quarter results. The IT giant kicks off the earnings season, which is being closely watched for signs of recovery for Indian Inc.

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