Saturday, January 29, 2022

Sensex ends 163 pts higher after RBI policy; financial stocks rally

By PTI Updated: Feb 06, 2020 10:30 pm

Mumbai, Feb. 6 (PTI): Rising for the fourth straight session, market benchmark Sensex ended 163 points higher on Thursday after the RBI left the policy rates unchanged but maintained its accommodative stance to boost growth.

In the sixth bi-monthly monetary policy review of 2019-20, the central bank also kept the GDP growth rate estimate unchanged for the current fiscal at 5 per cent and projected a pick up in growth to 6 per cent in the next financial year.

The 30-share BSE Sensex settled 163.37 points, or 0.40 per cent, higher at 41,306.03. It hit an intra-day high of 41,405.43.

Similarly, the broader NSE Nifty rose 48.80 points, or 0.40 per cent, to 12,137.95.

IndusInd Bank was the top gainer in the Sensex pack, rallying over 4 per cent, followed by SBI, Bajaj Finance, Bharti Airtel, Axis Bank, Sun Pharma, HDFC and PowerGrid.

On the other hand, Titan, Infosys, ITC, Kotak Bank and Asian Paints were among the laggards.

Rate-sensitive financial and banking stocks rallied, with BSE bankex and finance rising up to 1.21 per cent. However, realty settled in the red.

According to experts, RBI’s accommodative stance bodes well for investors despite no change in policy rates.

The central bank’s six-member Monetary Policy Committee voted unanimously to hold the benchmark rate at 5.15 per cent, but also said that there was “policy space available for further action”.

RBI Governor Shaktikanta Das said while the pause decision may be on expected lines, the central bank has several instruments up its sleeves, hinting at use of unconventional tools such as the ones used by the US Fed after the global financial crisis in 2008 to boost growth as rate cuts were not effective enough.

By PTI Updated: Feb 06, 2020 10:30:36 pm