Sensex remains in green despite RBI credit policy announcement

Mumbai :Continuing its upward trend, the benchmark BSE Sensex remained up by 45.97 points despite the Reserve Bank keeping interest rate unchanged.

The Sensex, which gained over 101 points in early trade, was quoting higher by 45.97 points, or 0.18 per cent, at 26,225.67 during late morning trade after RBI maintained its key lending rate at 6.75 per cent in its 5th bi-monthly monetary policy review.

The gauge had gained 369.92 points in the previous three sessions.

Similarly, the National Stock Exchange index Nifty was trading at 7,956.60, up 21.35 points, or 0.27 per cent.
The BSE banking index, however, was down 0.18 per cent to 19,880.45 after rising to 20,000.15.

On similar lines, the BSE Realty index was quoting 0.02 per cent lower at 1,343.64.

Brokers said RBI’s decision to keep key interest rate unchanged was largely in line with investor expectations and did not have any immediate positive impact.

Meanwhile RBI Governor Raghuram Rajan today kept the key policy rates unchanged, but affirmed the central bank’s commitment to ease the rates as and when room is available, saying inflation which guides its stance is likely to perform better than expected.

The RBI left the short-term lending rate or repo rate unchanged at 6.75 per cent, and the cash reserve ratio static at 4 per cent. The central bank also retained the GDP projection unchanged at 7.4 per cent with a moderate downward bias.