Indian shares posted strong gains on Wednesday after the Reserve Bank of India (RBI) maintained a status quo on policy rates for the fifth consecutive meeting and retained the economic growth projection for the current financial year at 10.5 percent, as widely expected.
Cues from Asia and Europe were also supportive, helping investors shrug off weak service sector activity data and concerns arising from the second wave of infections in the country.
RBI Governor Shaktikanta Das said the central bank and the government are prepared to tackle the second wave of the pandemic.
The benchmark 30-share BSE Sensex climbed 460.37 points, or 0.94 percent, to 49,661.76, with banks and financials leading the surge after the RBI said it is committed to maintain liquidity surplus. The broader NSE Nifty index ended up 135.55 points, or 0.92 percent, at 14,819.05.
Analysts said the move to introduce G-SAP – secondary market GSec acquisition program is a masterstroke by the RBI that would help reign in a sharp spike in GSec bond yields.
SBI Life, ICICI Bank, IndusInd Bank, SBI, Wipro and JSW Steel jumped 2-5 percent, while Adani Ports fell 2.8 percent on profit taking after a sharp rally the previous day. UPL and Tata Consumer Products lost over 1 percent each.
Market Analysis
Sensex, Nifty Rally On Dovish RBI Policy
2021-04-07 10:55:22
