NSE Nifty climbed 276.25 points.
NSE Nifty climbed 276.25 points.
Benchmark indices jumped on Friday after falling in the last seven trading sessions, with the Sensex climbing 1,017 points following the Reserve Bank of India’s interest rate decision.
The RBI on Friday raised the benchmark lending rate by 50 basis points to 5.90% to check inflation, which has remained above its tolerance level for the past 8 months. Overall, the RBI has increased the benchmark rate by 1.90% since May this year.
Bouncing back after seven consecutive sessions of decline, the 30-share BSE benchmark jumped 1,016.96 points or 1.80% to end at 57,426.92. During the day, it closed at 57,722.63, up 1,312.67 points or 2.32%.
Similarly, the broader NSE Nifty climbed 276.25 points or 1.64% to end at 17,094.35.
“The Monetary Policy Committee (MPC) has increased by 50 bps in line with expectations,” said Madhavi Arora, principal economist, Emkay Global Financial Services.
Bharti Airtel, IndusInd Bank, Bajaj Finance, Titan, Kotak Mahindra Bank, HDFC Bank and Tata Steel were the major gainers in the 30-share Sensex pack.
However, Dr Reddy’s, Asian Paints, ITC and Hindustan Unilever were among the laggards.
“The rate hike by RBI by 50 bps in today’s meeting was in line with expectations. Key highlights The resilience shown by the Indian economy in view of the turbulent global environment and concerns arising out of the global growth slowdown and tough stance by various central banks.” Santosh Meena, Head of Research, Swastika Investmart Limited said.
Elsewhere in Asia, markets in Seoul, Tokyo and Shanghai closed lower, while Hong Kong closed higher.
Stock exchanges in Europe were trading in the green in mid-session deals.
On Thursday, the US markets closed sharply.
Meanwhile, international oil benchmark Brent crude futures jumped 1.19% to $89.54 a barrel.
Foreign institutional investors sold shares worth a net Rs 3,599.42 crore on Thursday, according to data available with BSE.