Sensex, Nifty End Higher As RBI Ups GDP Forecast

Indian shares eked out modest gains on Friday as investors reacted to mixed global cues and the RBI’s status quo interest-rate decision.

A rebound in the dollar index and oil prices served to cap the upside to some extent.

Earlier today, the Reserve Bank of India left its benchmark rates unchanged for the fifth straight session, saying that the impact of the past rate hikes is yet to be fully felt on the economy.

That said, the central bank maintained a hawkish stance, citing the risk of food price shocks derailing the disinflation process.

The MPC will “remain highly alert and prepared to undertake appropriate policy actions, as warranted”, Governor Shaktikanta Das said.

Investors also looked ahead to the release of U.S. jobs data later in the day for clues on the Fed’s rate trajectory ahead of the Federal Reserve’s monetary policy meeting next week.

While the Fed is widely expected to leave interest rates unchanged next week, traders will be looking for further evidence the central bank could cut rates as soon as March 2024.

Other central banks including the European Central Bank, Bank of England and the Swiss National Bank will also announce their monetary policy decisions next week, with no changes in interest rates expected.

The benchmark S&P BSE Sensex rose 303.91 points, or 0.44 percent, to 69,825.60 as the RBI raised its GDP growth forecast for the financial year 2024 and kept the inflation forecast unchanged.

The broader NSE Nifty index settled 68.25 points, or 0.33 percent, higher at 20,969.40.

Metal and IT stocks topped the gainers list, with Infosys, JSW Steel, LTIMindTree and HCL Technologies climbing 2-3 percent.

Adani Group stocks underperformed, with Adani Enterprises and Adani Ports both falling around 2 percent after recent strong gains.