Sensex and Nifty gains after RBI keeps rates unchanged

 

Sensex and Nifty Today 8 April 2022: The Indian stock markets opened higher on Friday amid positive cues from the global markets. The benchmark indices Sensex and Nifty opened at 17698.15 and 59256.76 levels today up by 58.6 points and 222.02 points respectively. The markets were trading volatile in a narrow range in the morning deal and later made a strong gain after the RBI policy was announced.

 

Stock Market News Today

 

Despite the initial hiccups, Indian markets got strength in the afternoon session as traders took support after the RBI governor gives clarifications on various questions related to economic indicators like GDP, inflation, etc in the press conference. Meanwhile, RBI kept its ket rates unchanged at 4.0 percent, a record low opting to support the post-pandemic economic growth despite rising inflation due to the Russia-Ukraine war. The rate remains unchanged 11 times in a row. The reverse repo rate has remained unchanged at 3.35 percent.

 

RBI Monetary Policy Highlights

 

RBI has unchanged its repo and reverse repo rates and maintain an accommodative monetary policy stance on Friday. The policy has supported the growth in an uncertain environment of rising inflation and crude prices, geopolitical tensions, and a resurgence of Covid in China. 

As widely expected, RBI has cut its GDP projection for FY23 from 7.8% to 7.2% and hiked inflation from 4.5% to 5.7% led by Q1 at 6.3% and H2 at 5.4-5.1%. RBI’s projections got changed mainly due to rising inflation and global uncertainties, even as we expect an uptick in rural income from high Agri commodity prices and gradual demand revival in coming months.

 

Global markets today

 

On the global front, the other Asian market indexes mostly closed in the green on Friday taking positive cues from the US markets.  Investors were hoping for China’s Stimulus measure amid a surge in covid cases in China. European markets are trading in the green following US and Asian markets overnight.

 

Sensex and Nifty indexes at the close today

 

At the close, the Nifty index gained 144.80 points or 0.82 percent and closed at 17784.35 levels while Sensex was up by 412.33 points or 0.70 percent and finished at 59447.18 levels. The Bank Nifty index ended higher by 194.70 points or 0.52 percent on spot and ended at 37752.05 levels.

The broader markets performed in line with their larger peers today. The Nifty midcap index was up by 302.90 points or 0.98 percent and closed at 31214.20 levels. The Nifty smallcap index closed higher by 42.05 points or 0.39 percent and finished at 10896.55 levels.

 

Top Nifty gainers and losers

 

The top gainers in the Nifty 50 index were Grasim, SBI Life, ITC, JSW Steel, and M&M whereas the top losers were Cipla, Tech Mahindra, Maruti Suzuki, NTPC, and Sun Pharma

The top gainers in the Nifty midcap index were Chola Invest, Prestige Estate, and Syngene Intl  and the top losers were RBL Bank, Escorts, and Trent

The smallcap top gainers were Bharat Dynamics, Mishra Dhatu Ni, and Sterling Wilson and the top losers were Tanla Platforms, Future Retail, and Can Fin Homes.

 The most active stocks in the Nifty index in terms of value were HDFC Bank, HDFC, and Reliance. The most active stocks in terms of volume were ITC, HDFC Bank, and Coal India.

On a sectoral front, barring IT all other sectoral indices were closed higher today. The sectors that led the rally were FMCG, Metals, and Oil & Gas.

 

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Happy Investing!!

Editorial desk