Social News XYZ     

RBI move boosts markets, banking stocks rise

RBI move boosts markets, banking stocks rise

Mumbai, April 7 (SocialNews.XYZ) India's benchmark equity indices rose on Wednesday as the Reserve Bank decided to retain its key short-term lending rates along with the growth-oriented accommodative stance.

Healthy buying was seen in banking, auto and technology names post the RBI Monetary Policy Committee meet.

 

Globally, Asian markets were mixed on Wednesday as investors took a breather following a recent run-up, though another round of healthy data provided cause for continued optimism over recovery.

Similarly, European stocks hovered near all-time highs on Wednesday as hopes for a global economic recovery from the pandemic continued to fuel investor optimism.

On the domestic front, the 10 year bond yields fell about 4 bps from Tuesday to 6.08 per cent post the announcement of G-SAP in the MPC meet, while the rupee fell almost 1.5 per cent - its biggest single-day drop since August 2019 -- to end at 74.56 against the dollar.

India volatility index (VIX) fell down by 2.84 per cent from 20.84 to 20.24.

Among sectors, PSU banks, Nifty bank, auto and IT were the main gainers.

The S&P BSE Sensex closed 460.37 points, or 0.94 per cent higher, at 49,661.76 points from the previous close.

The NSE Nifty50 on the National Stock Exchange ended the trade session at 14,819.05, up by 135.55 points, or 0.92 per cent, from its previous close.

"Nifty took resistance exactly from the anticipated level of 14,880 on April 7 despite multiple attempts to breach it post 11.00 hrs and closed about 60 points lower," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"14,883 continues to be resistance for the Nifty while a breach of 14,629-14,776 could result in some more weakness. A move above 14,883 could take the Nifty to 15,050 soon."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Domestically, Nifty cheered RBI's decision to keep rates unchanged and maintain its accommodative stance to support growth, especially when the economy faces a renewed threat to growth due to the resurgence of Covid cases."

"RBI pledged to buy Rs 1 lakh crore of government bonds this quarter to cap borrowing costs which led to easing of bond yields. Further the sentiments were boosted by IMF's prediction for India's GDP growth at 12.5 per cent for 2021 and 8 per cent for 2022."

Source: IANS

Facebook Comments
RBI move boosts markets, banking stocks rise

About Gopi

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.

He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.

When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.

He can be reached at gopi@socialnews.xyz

PHP Code Snippets Powered By : XYZScripts.com
%d bloggers like this: