Financials News

Nifty soars 65 pts on dovish RBI tone

Nifty soars 65 pts on dovish RBI tone

Markets staged a remarkable rebound as investors cheered the RBI’s decision to remain accommodative despite keeping the key rates unchanged, driving key indices to an over seven-month high.

The massive buying spree sent the NSE-benchmark Nifty rallying by 65 points to end at 8,266.45.

Staying focused on containing inflation, the apex bank in its second bi-monthly monetary policy meeting of this fiscal kept the repo rate unchanged but signalled a prospect of interest rate cut later this year if strong monsoon rains dampen inflation.

Although the RBI’s decision to keep key interest rate unchanged was largely in line with expectations, investors are factoring a repo rate cut in August, a floor trader commented.

Frantic buying was seen in stocks across the board, with those from the Banking, Realty, FMCG, Metal and Infra counters being the top performers.

Mid-cap and small-cap indices too made a spectacular comeback.

Meanwhile, bourses across Asia closed higher on easing worries over an imminent Fed rate hike after US Federal Reserve chief Janet Yellen voiced concern on weak jobs data amid uncertainties ahead, including Britain’s referendum on its EU membership.

The 50-share Nifty resumed firmly higher at 8,235.55 and moved between 8,294.95 and 8,216.40 before concluding at 8,266.45, registering a smart rise of 65.40 points, or 0.80 per cent, over its last close.

Among the NSE sectoral indices, Nifty PSU bank surged 4.08 per cent, followed by realty (1.88 per cent), Nifty Bank (1.57 per cent), FMCG (1.56 per cent), metal (1.39 per cent), Private Bank (1.33 per cent), infra (0.76 per cent), auto (0.40 per cent), IT (0.15 per cent) and energy (0.04 per cent).

The prime index movers were ICICI Bank, ITC, SBI, L&T, Sun Pharma, HUL, UltraTech Cement, TCS, Zee, Kotak Mahindra, Tata Motors, Adani Ports, HDFC Bank, Bosch, ONGC, M&M, Lupin, Tata Steel, Hindalco and Wipro.

Notable losers were Infosys, IndusInd Bank, BPCL and Eicher Motors.

A total of 933 stocks advanced, 616 declines while 77 ruled stable.

Turnover in cash segment rose to Rs 19,024.21 crore, compared to Rs 15,098.66 crore yesterday. A total of 9,124.28 lakh shares changed hands in 83,59,048 trades.

The market capitalisation of NSE stood at Rs 98,60,297 crore.