Posted on December 9, 2023
The Benchmark Sensex and Nifty rebounded, closing at new all-time highs on Friday. This surge came after the Reserve Bank raised the growth forecast for the current fiscal year and maintained policy rates, prompting robust buying in banking and other rate-sensitive stocks.
The 30-share BSE Sensex climbed 303.91 points (0.44%), reaching a record high of 69,825.60, with an intra-day peak of 69,893.80. Simultaneously, the broader Nifty index rose by 68.25 points (0.33%) to achieve a fresh record high of 20,969.40.
Key gainers in the Sensex included HCL Tech, leading with a 2.69% increase, followed by JSW Steel (2.44%), and Infosys (1.67%). HDFC Bank, Titan, Axis Bank, and ICICI Bank also registered gains, while ITC, Mahindra & Mahindra, and Bajaj Finance faced declines.
Vinod Nair, Head of Research at Geojit Financial Services, remarked, “The RBI struck a balance by raising the economic growth forecast while expressing concern about short-term food inflation. This had an impact on FMCG stocks, which underperformed today.”
Foreign institutional investors sold shares worth Rs 1,564.03 crore on Thursday. The RBI’s Monetary Policy Committee decided to maintain the benchmark repurchase rate at 6.5%. The central bank revised the economic growth forecast to 7%, reinforcing India’s position as the world’s fastest-growing major economy.
In Asian markets, the Shanghai Composite gained 0.11%, while the Nikkei 225 and Hang Seng fell by 1.68% and 0.15%, respectively. European markets were trading higher, with France’s CAC 40 up by 0.91%, London’s FTSE 100 rising by 0.55%, and Germany’s DAX trading 0.39% higher. The US markets ended with significant gains on Thursday, and the global oil benchmark Brent crude traded 1.62% higher at USD 75.25 a barrel.
On Thursday, the 30-share index fell by 132.04 points (0.19%) to close at 69,521.69, while the Nifty declined by 36.55 points (0.17%) to settle at 20,901.15.