RBI keeps policy rates unchanged, Nifty and Sensex hits a record high today

Market Today-RBI Policy Updates: Indian stock markets opened positive today and maintained their upward momentum till the end. Healthy buying was seen in banking, telecom, and consumer durable stocks today. Nifty and Sensex touched a new record high and closed in the positive zone.

 

RBI Policy Updates

 

The market sentiments become positive after RBI left its key interest rates unchanged as it was expected due to the elevated inflation. The Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, voted unanimously to hold the policy repo rate at 4%, the reverse repo rate was retained at 3.35%.

 

 

The RBI governor said inflation is likely to remain elevated with some relief in the winter months. CPI inflation projected at 6.8% for Q3FY21 and 5.8% for Q4FY21. The growth projection has been revised, the RBI now expects the GDP growth at -7.5% in the year ending March 31, 2020, from -9.5% as forecasted earlier.

 

Global markets updates

 

On the global front, Asian markets mostly closed in the green today with the hopes that coronavirus vaccine rollouts will boost the global economy and market sentiments. The European market indices and US futures are also trading higher due to the progress of fiscal stimulus aid in the US.

 

Today’s Market- Nifty, Sensex, and Bank Nifty

 

At the close, Nifty gained 124.65 points or 0.95% and at 13258.55 levels while Sensex closed higher by 446.90 points or 1.01% and at 45079.55 levels. The Bank Nifty on the spot levels jumped 603.65 points or 2.05% and ended at 30052.40 levels.

The Nifty midcap and smallcap 100 closed higher today. The midcap index gained 70.05 points or 0.35% and at 20197.30 levels. The Nifty smallcap index also closed higher by 24 points or 0.36% and ended at 6699.35 levels.

The top five gainers in the Nifty 50 index for the day were Hindalco, ICICI Bank, Adani Ports, Ultratech Cement, and Sun Pharma. The top five losers in the Nifty 50 index for the day were Reliance, HDFC Life, Bajaj Finserve, HCL tech, and BPCL. The most active stocks in the NSE for the day were SBI, ICICI Bank, and Maruti Suzuki.

On the sectoral front, Infrastructure, Banking, FMCG, Metals, and Telecom sectors closed as top gainers today. On the losing side, Oil & Gas, Retail, Manufacturing and Insurance sectors closed in the red.

 

NSE Market Indices: Nifty 50 and Bank Nifty futures today

 

The  Nifty 50 futures price today opened at 13220.20 and it made a positive opening of 28.35 points today. It has touched an intraday high at 13326.20 and a day’s low at 13202.05

The Nifty 50 futures price has given a movement of 124.15 points today. In the end, it gained by 130.15 points or 0.99% and closed at 13322 levels.

The Bank Nifty today in futures opened at 29350 It made a gap down opening of 192.20 points. It has touched an intraday high at 30276.95 and a day’s low at 29350

The Bank Nifty futures today has given a movement of 926.95 points. In the end, it gained 722.8 points or 2.45% and closed at 30265 levels.

 

Conclusions

 

Indian markets touched a new record high and closed in the positive zone today. The RBI’s decision to keep the rates unchanged and maintained an accommodative stance for the current and upcoming year has taken positively by the market participants. 

Traders can read our “weekly market updates” tomorrow and “key factors to impact the market next on Sunday”

 

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Happy Weekend!!

Editor’s Desk