Markets hold on to early gains after RBI monetary policy decision


Men watch stock news on a display screen as Sensex opens. File.

Men watch stock news on a display screen as Sensex opens. File.
| Photo Credit: ANI

Benchmark equity indices jumped in late morning trade on June 7, extending their rally to the third straight session, after the RBI decided to keep the policy rate unchanged for the eighth time in a row, in line with market expectations.

Buying in IT stocks added to the positive trend in markets.

The 30-share BSE Sensex jumped 907.43 points to 75,981.94 during the late morning trade. The NSE Nifty went up by 260.95 points to 23,082.35.

Interest rate-sensitive bank, realty and auto stocks were trading with gains.

In the past two days, the BSE benchmark surged 2,995.46 points or 4.15% after Tuesday’s massive rout.

The Reserve Bank of India (RBI) on Friday decided to keep the policy rate unchanged for the eighth time in a row, saying it will maintain a tight vigil on inflation.

Announcing the second bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5%.

Among the 30 Sensex companies, Wipro, Infosys, Tech Mahindra, Bajaj Finserv, Tata Steel and Tata Consultancy Services were among the biggest gainers.

Maruti, IndusInd Bank, Hindustan Unilever and ITC were the laggards.

In Asian markets, Seoul quoted with gains while Tokyo, Shanghai and Hong Kong traded lower.

US markets ended on a mixed note on Thursday.

Global oil benchmark Brent crude climbed 0.26% to $80.08 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,867.72 crore on Thursday, according to exchange data.

Regaining the 75,000 level, the BSE benchmark jumped 692.27 points or 0.933% to settle at 75,074.51 on Thursday. The Nifty climbed 201.05 points or 0.89% to 22,821.40.

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