The domestic stock markets made intraday gains on Friday after the Reserve Bank of India left the repo rate unchanged at 4% and retained its “accommodative” monetary policy stance.
At 2.50 pm, the S&P BSE Sensex was trading 309.41 points higher at 40,492.08, while the NSE Nifty 50 rallied 76.55 points to reach 11,911.15.
The top gainers on the Sensex were Axis Bank, HDFC Bank, State Bank of India, ICICI Bank and Larsen & Toubro. Banking and financial services shares witnessed strong buying after the RBI’s announcement on infusing additional liquidity in the system. Sun Pharmaceuticals, Asian Paints, Nestle India, Ultra Cement and Hindustan Unilever were the top losers.
On the Nifty, Axis Bank, HDFC Bank, ICICI Bank, Wipro and State Bank of India gained the most. The biggest losers were Grasim Industries, United Phosphorus, Hindal, Sun Pharmaceuticals and State Bank of India Life Insurance company.
Jimeet Modi, founder and chief executive officer of stock trading company SAMCO Securities, said the RBI’s monetary policy reviews were as expected, but the “good commentary” on gross domestic product outlook and liquidity measures was what rallied the markets, according to PTI. “All these proactive measures undertaken by the Indian central bank to revive growth and stimulate the economy will go down well with capital markets,” Modi added.
The central bank announced on-tap Targeted Long-Term Repo Operations, with tenors of up to three years for a total amount of up to Rs 1 lakh crore, at a floating rate linked to the policy repo rate. “The scheme will be available up to March 31, 2021 with flexibility with regard to enhancement of the amount and period after a review of the response to the scheme,” RBI Governor Shaktikanta Das said.