Sensex Snaps 3-day Losing Streak, Surges 412 pts, Nifty Ends Near 17,800 Post RBI MPC Decision

Benchmark indices snapped their three-day losing run and settled 0.8 per cent higher on Friday. Investors heaved a sigh of relief as the Reserve Bank of India decided to keep the interest rates unchanged and maintainee ‘accommodative’ stance despite liquidity unwinding by global central banks. The RBI also announced revised inflation and GDP growth forecasts in-line with market expectations. Yields on 10-year bonds, however, hit multi-year high of 7.075, inching up 2.3 per cent. At close, the Sensex was up 412.23 points or 0.70% at 59,447.18, and the Nifty was up 144.80 points or 0.82% at 17,784.30. About 2232 shares have advanced, 1072 shares declined, and 117 shares are unchanged.

The broader BSE MidCap and SmallCap indices rose in tandem with the frontline indices and closed 0.9 per cent higher each.

Among individual stocks, ITC ended as the top gainer as it advanced 4.7 per cent on the Sensex index. The stock of the cigarettes to fast moving consumer goods (FMCG) major has rallied 24 per cent in the past six week.That apart, Dr Reddy’s Labs, M&M, Tata Steel, Titan, Reliance Industries, Asian Paints, Nestle India, and IndusInd Bank were the other gainers, rising upwards of 1.5 per cent each.

On the downside, only Tech M, NTPC, Maruti Suzuki, Sun Pharma, and HCL Tech were the laggards, down up to 1.2 per cent.

Sectorally, the Nifty Metal index was the biggest gainer, rising 2 per cent. Meanwhile, the Nifty IT index ended wee bit in the red.

Global Cues

The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. The Dow Jones Industrial Average rose 0.25% to end at 34,583.57 points, while the S&P 500 gained 0.43% to 4,500.21. The Nasdaq Composite climbed 0.06% to 13,897.30.

Oil prices continued retreating on Thursday aided by plans of the US and its allies to release oil from strategic reserves. Brent crude futures fell 0.5 per cent to settle at $100.58 a barrel, while WTI crude fell 20 0.6 per cent to settle at $96.03 a barrel.

Asia markets were mostly subdued this morning with the Hang Seng down 0.65 per cent, while Nikkei was flat. Strait Times and Kospi fell up to 0.5 per cent. Shenzhen Component was lower, while Shanghai Composite was up 0.2 per cent.

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