Sensex, Nifty close at record highs after RBI held steady

National Stock Exchange Benchmark – Nifty 50 closed at a record high while the 30-share Sensex fell a few points from all-time highs on Friday after the Reserve Bank kept key benchmark rates unchanged for the eighth time in a row and promised to maintain. Status quo at rates “as long as it is necessary to revive growth.” The Sensex and Nifty 50 index touched a high of 17,941.85, led by gains in Reliance Industries, Infosys, TCS, HCL Technologies, Larsen & Toubro and Tech Mahindra.

The Sensex closed 381 points higher at 60,059 and the Nifty 50 index climbed 105 points to end at a record high of 17,895.

The central bank kept the prime lending rate or repo rate unchanged at 4 per cent, while the reverse repo rate or lending rate also remained unchanged at 3.35 per cent.

“There should be no concerns about the recovery or the adequacy of liquidity in the banking system to support the financial markets,” Reserve Bank of India Governor Shaktikanta Das said in his policy address.

“Our whole approach is that of gradualism, we don’t want suddenness or surprises,” he said, adding that there was no need to hold more G-SAP or government securities acquisition program auctions at this point.

“RBI policy is a “I am not” policy aimed at achieving multiple objectives. Supporting growth, keeping inflationary expectations under control, stabilizing financial markets, liquidity adequate and appropriate, yield curve in shape and government’s Ensuring smooth passage of the lending programme. He has assured the markets that monetary policy normalization will be gradual and calibrated, said Nilesh Shah, Group President and MD, Kotak Mahindra Asset Management Company.

Information technology stocks were in high demand on Friday ahead of the announcement of earnings of the country’s largest IT company Tata Consultancy Services. Nifty IT index was the top sectoral gainer, ending the index with a gain of nearly 2 per cent.

Nifty PSU Bank, Media, Oil & Gas, Auto and Metal indices also rose between 0.3-1.8 per cent.

On the other hand, selling pressure was witnessed in financial services, FMCG, pharma, realty and healthcare stocks.

Mid- and small-cap stocks also witnessed interest as Nifty Midcap 100 index rose 0.4 per cent and Nifty Smallcap 100 index rose 1.3 per cent.

Reliance Industries was the top Nifty topper, with the stock rising 3.76 per cent to close at a record high of Rs 2,669. Wipro, Infosys, Tata Motors, Tech Mahindra, HCL Technologies, HCL Technologies, TCS, UPL, Tata Steel and Larsen & Toubro also rose between 1-3 per cent.

On the flipside, Coal India, SBI Life, NTPC, Maruti Suzuki, Shree Cements, Hindustan Unilever, Titan, Tata Consumer Products, Dr Reddy’s Labs and Hindalco were among the losers.

Overall market breadth was positive as 1,852 shares closed higher while 1,452 shares closed lower on the BSE.

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