Sensex Rallies Over 850 Points Ahead Of RBI’s Policy Decision Led By Banks
The Indian equity benchmarks bounced back strongly after two sessions of sharp losses a day ahead of the Reserve Bank of India’s monetary policy decision due on Wednesday led by rate sensitive shares. The Sensex rose as much as 1,158 points or 2 per cent and Nifty 50 index moved above its important psychological level of 17,250 at the day’s highest level. ICICI Bank, HDFC Bank, HDFC, Infosys and Reliance Industries were among the top movers in the 30-share Sensex.
The Sensex climbed 887 points to close at 57,634 and Nifty 50 index advanced 264 points to close at 17,177.
Investor sentiment got a boost on Tuesday on hopes that the Reserve Bank of India will likely hold off on raising its key borrowing and lending rates on Wednesday, as it adopts a cautious tone amid the spread of the Omicron coronavirus variant, economists and market participants said.
Fifty economists surveyed by Reuters in a December 1-3 poll expect the RBI to hold its benchmark repo rate at 4.00 per cent.
Several economists feel that given the uncertainties of the new Omicron variant on the economy, it was better to adopt a wait-and-watch approach despite inflationary pressures.
Meanwhile, buying was visible across sectors as all the 15 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Bank index’s 3 per cent gain.
Nifty Metal, PSU Bank, Private Bank, Realty, IT, Media, Financial Services and Auto indices also rose between 1.6-3 per cent.
Mid- and small-cap shares also witnessed buying interest as Nifty Midcap 100 index rose 1.4 per cent and Nifty Smallcap 100 index advanced 1.1 per cent.
Hindalco was top Nifty gainer, the stock rose 5.15 per cent to Rs 443. Tata Steel, Axis Bank, ICICI Bank, Tata Motors, Adani Ports, JSW Steel, Kotak Mahindra Bank, Titan, State Bank of India, Bajaj Finance and Maruti Suzuki also rose between 2-4 per cent.
On the flipside, Britannia Industries, Cipla, Divi’s Labs, Asian Paints and Indian Oil were among the notable losers.
The overall market breadth was extremely positive as 2,337 shares ended higher while 943 closed lower on the BSE.
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