RBI’s ‘neutral’ stance boosts equity indices

Mumbai, June 6: The key indices of the Indian equity market made healthy gains on Wednesday as investors’ risk-taking appetite was enhanced after the Reserve Bank of India maintained its “neutral” stance on future rate hike trajectory.

On Wednesday, RBI raised its key interest rate for the first time by 25 basis points to 6.25 per cent since January 2015.

Index-wise, the 30-scrip Sensitive Index (Sensex) provisionally closed higher by 275.67 points or 0.79 per cent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) also settled in the positive territory. It gained 91.50 points or 0.86 per cent to provisionally close at 10,684.65 points.

The Sensex of the BSE, which opened at 34,932.49 points, provisionally closed at 35,178.88 points, 275.67 points or 0.79 per cent higher from the previous day’s close at 34,903.21 points.

The Sensex touched a high of 35,230.54 points and a low of 34,896.37 points during the intra-day trade.

“RBI maintaining its neutral stance has been taken as a positive by the investors. In addition, other announcements regarding the realty, bond market and banking sectors boosted sentiments,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“The negative impact of the rate hike was also curbed as market participants had already factored-in a possibility of a rate hike.”


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