Mumbai, 5 December. There was considerable enthusiasm in the domestic stock market on Friday after the announcement of policy steps by the Reserve Bank of India (RBI) to cut the repo rate and increase liquidity. Although there was a lot of volatility throughout the session on the last day of the trading week, in the end both the benchmark indices closed with good gains. This was the second consecutive day of bullishness in the stock market. In this sequence, while BSE Sensex rose by 447 points, NSE Nifty gained 153 points and reached near 26,200.
MPC unanimously cuts repo rate by 0.25 percent
It is noteworthy that the Monetary Policy Committee (MPC) of RBI unanimously reduced the repo rate by 0.25 percent to 5.25 percent. This is the first cut in the policy rate since June this year. Apart from this, the Reserve Bank also maintained the neutral stance of monetary policy. In the policy statement, RBI reduced the inflation forecast for the current financial year to 2 per cent from 2.6 per cent while raised the GDP growth forecast to 7.3 per cent from 6.8 per cent. Overall, the stock market appreciated the rate cut and liquidity increase measures. Growth was seen especially in the bank, vehicle and real estate sectors.
Sensex closed at 85,712.37 points
The 30-share sensitive index Sensex of Bombay Stock Exchange (BSE) closed at 85,712.37 points, rising 447.05 points or 0.52 percent. At one time during trading, it had jumped by 531.4 points to reach 85,796.72. However, it also saw the day’s low at 85,078.12. Among Sensex related companies, shares of 24 closed in the green and six were weak.
Nifty strengthened by 152.70 points
On the other hand, the standard index Nifty based on 50 shares of National Stock Exchange (NSE) also increased by 152.70 points or 0.59 percent to reach 26,186.45 points. Among Nifty related companies, shares of 37 gained strength while 12 suffered losses.
State Bank of India stocks rose the most by 2.46 percent
Among the companies included in the Sensex group, the stock of State Bank of India (SBI) rose the most by 2.46 percent. Shares of Bajaj Finserv, Bajaj Finance, Maruti, HCL Tech, L&T, Mahindra & Mahindra and Infosys were also major gainers. On the other hand, shares of Hindustan Unilever, Eternal, Tata Motors Passenger Vehicles and Sun Pharma declined.
FIIs made net sale of shares worth Rs 1,944.19 crore
According to stock market data, foreign institutional investors (FIIs) on Thursday made a net sale of shares worth Rs 1,944.19 crore while domestic institutional investors (DIIs) made a net purchase of shares worth Rs 3,661.05 crore. Global oil benchmark Brent crude stood at $63.36 per barrel, up 0.16 percent.
Comments are closed.