Sensex, Nifty Close Slightly Higher After RBI Holds Repo Rate Steady
Mumbai — Indian stocks ended modestly higher Wednesday after the Reserve Bank of India kept its benchmark repo rate unchanged at 5.25% and maintained a neutral policy stance.
The Sensex rose 152.05 points, or 0.19%, to close at 78,581.00. The Nifty gained 9.75 points, or 0.04%, to finish at 24,624.65.
Trading remained subdued as investors assessed the central bank’s policy announcement. Gains in metal, real estate and automobile stocks helped offset weakness in the banking sector.
The RBI retained its economic growth forecast of 6.7% for the current financial year. It also lowered its headline inflation projection to 5% from an earlier estimate of 5.1%.
Shriram Finance, Grasim Industries and JSW Steel were among the top gainers on the Nifty.
Broader markets outperformed the benchmark indices. The Nifty MidCap index rose 0.18%, while the Nifty SmallCap index advanced 0.7%.
Among sectors, the Nifty Metal index posted the strongest gains, followed by the Nifty Realty and Nifty Auto indices. The Nifty Bank and Nifty Private Bank indices ended lower and were the session’s biggest laggards.
Market analysts said 24,500 remains the Nifty’s immediate support level, followed by the 24,400-to-24,300 range.
The 24,600 level continues to act as resistance because it carries the highest call open interest, while strong put open interest at 24,500 and 24,400 is providing support, according to analysts.
They said the index would need to close firmly above 24,600 to signal renewed bullish momentum. Until then, the market is expected to remain range-bound.
Investors largely viewed the RBI’s decision as being in line with expectations, while the lower inflation projection and steady growth outlook helped keep sentiment positive. (Source: IANS)
