New Delhi: Markets opened on Friday on expectations that the RBI will keep the repo rates unchanged at 4 per cent in the RBI’s monetary policy review. The BSE Sensex was up 438.69 points or 0.74 per cent at 60,116.52 at 10:45 am, while the Nifty was up 136.60 points or 0.77 per cent at 17,926.95.
Markets reacted positively to RBI’s announcement with the benchmark index rising above the 60,000 mark and the Nifty hitting a new record high. Auto, metal and oil and gas indices rose 1-1 per cent each. RBI Governor Shaktikanta Das closes policy statement; Keeps policy rates unchanged; Status quo on liberal stance.
Market indices were down from highs but remained in the green. Nifty was above 17,800 while Sensex closed at 59,900.
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Investors are eyeing the US jobs report. One of the major announcements that will impact the market will be the announcement of TCS’ quarterly results. The rupee opened on a weak note in early trade on Friday and fell below the 75 per US dollar level as rising crude oil prices and strengthening of the US currency in the overseas market weighed on investor sentiments.
The repo rate remained unchanged at 4 per cent and the reverse repo rate remained unchanged at 3.35 per cent. RBI left interest rates unchanged despite rising inflationary pressures and depreciation of rupee.
High frequency indicators suggest that economic activity has picked up, the RBI governor said. Core inflation has remained stable. July-September Consumer Price Index (CPI) inflation was lower than expected
The recovery of the Indian economy is gaining momentum; It is in better condition than the last MPC meeting. Strengthening growth impulses, inflation trajectory favorable from anticipated; The Governor said that our economy is expected to move towards normal times due to the resilience of the economic infrastructure.
(with inputs from PTI)
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