National Stock Exchange building stands in Mumbai. (Photographer: Vijay Sartape/BloombergQuint)

Sensex, Nifty Snap Three-Day Losing Streak As RBI Maintains Neutral Stance

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Indian equity benchmarks snapped their three-day losing streak after Reserve Bank of India maintained its neutral stance while raising repo rate by 25 basis points for first time since 2014 to keep inflation under check.

The S&P BSE Sensex rose 0.8 percent or 276 points to 35,179 and the NSE Nifty 50 index climbed 0.86 percent or 91 points to 10,685.

The stock market may have priced in the rate hike through a decline in the past three days, said Sushant Kumar, equities fund manager at Raay Global.

Stocks held gains as RBI kept neutral stance, Kumar added.

All sector gauges compiled by the National Stock Exchange ended higher led by the Nifty PSU Bank index's 2.5 percent surge.

The mid- and small-cap shares also rebounded strongly from losses in the previous session. The Nifty Midcap 100 index rose 1.4 percent and the Nifty Smallcap 100 index jumped 1.7 percent.

Sensex, Nifty Snap Three-Day Losing Streak As RBI Maintains Neutral Stance

Surprised About Timing But Had Factored-In A Rate Hike: Sanjeev Prasad

Sanjeev Prasad, senior executive director and co-head of institutional equities at Kotak Securities on RBI’s 25 basis points rate hike.

  • Focus on politics will increase going forward
  • Corporate and government bond yields have gone up
  • Market rates have already moved up

Rural And Urban Consumption Remains Healthy: Urjit Patel

Addressing the media after monetary policy meet, RBI governor Urjit Patel said inflation pressures have risen in key advanced and emerging economies.

Key highlights from the media briefing:

  • Capacity utilisation has increased in the manufacturing sector
  • Crude price rise and other developments have led to input cost pressures
  • Households reported significant rise in inflation expectations in May
  • Reiterate commitment to keep inflation at 4 percent in medium-term, remain vigilant
  • Domestic economic activity has exhibited revival, output gap has almost closed
  • Neutral stance leaves all options open
  • No tension between the stance and the policy move
  • Policy determined by the nominal anchor given via legislation, which is the CPI
  • Farm loan waivers have been done through individual state budgets
  • No direct implications of states’ farm loan waivers on banks’ books

Sensex, Nifty Resume Uptrend After RBI Keeps Neutral Stance

Indian equity benchmarks resumed up move after the Reserve Bank of India maintained its neutral stance while raising repo rate by 25 basis points.

The S&P BSE Sensex rose 325 points or 0.9 percent to 35,220 and the NSE Nifty 50 index gained 0.9 percent or 95 points to 10,688.

Sensex, Nifty Snap Three-Day Losing Streak As RBI Maintains Neutral Stance

Sensex, Nifty Off Day's High After RBI Hikes Interest Rate By 0.25%

Indian equity benchmarks came off intraday highs after the Reserve Bank of India hiked key rates by 25 basis points while maintaining its neutral stance.

The S&P BSE Sensex was up 0.39 percent or 135 points at 35,040 and the NSE Nifty 50 index rose 0.4 percent or 46 points to 10,639.

Sensex, Nifty Snap Three-Day Losing Streak As RBI Maintains Neutral Stance