Sensex adds 199 points as RBI surprises by pausing rate hike, banks rise

Sensex, Stock market
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Although the RBI Monetary Policy Committee (MPC) held the benchmark interest rate steady at 6.5% on Thursday, key indexes of Indian equities recovered their early losses and climbed in the morning session.

At 12:05 pm, the Nifty50 gained 0.33 percent to 17,610 points, while the Sensex gained 0.33 percent, or 198.61 points. The India VIX fear index declined 2% to 12.2 levels throughout the day.

Since May 2022, the rate-setting panel of the central bank has raised the repo rate six times consecutively, by a total of 250 basis points.

This time, it has halted the cycle and is prepared to act if the circumstance calls for it, while maintaining its “Withdrawal of Accommodation” posture.

Financial, banking, metals, and pharmaceutical firms drove gains on Dalal Street, while IT majors exerted pressure.

Heavyweights Adani Enterprises (NS: ADEL), Bajaj Finance (NS: BJFN), Bajaj Finserv (NS: BJFS), SBI (NS: SBI), Tata Motors (NS: TAMO), IndusInd Bank (NS: INBK), and Adani Ports (NS: APSE) led the rally on the Nifty pack, while HCL Tech (NS: HCLT), Tech Mahindra (NS: TEML), ONGC (NS: ONGC (NS: ONGC) and Nestle (NS: NEST) India pulled the index lower.

The majority of sectoral indexes under the Nifty umbrella rose, led by Nifty PSU Bank and Nifty Realty, while Nifty IT fell. The Nifty Bank gained 0.3%.

Important US contracts Dow Futures were unchanged, while Nasdaq 100 Futures were down 0.25 percent.


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