Sensex regains 60,000 after RBI retains accommodative stance

The benchmark Sensex reclaimed 60,000 on Friday, propelled by nearly 4 per cent surge in Reliance Industries, which has the biggest weighting in the index. The Nifty finished at an all-time high of 17,895.20, up 104.85 points or 0.59 per cent. This after the Reserve Bank kept the key interest rates unchanged but maintained its accommodative stance to bolster economic recovery.  

The Sensex 381 points, or 0.64 per cent to end at 60,059, less than 19 points shy of a new high. The 30-share index rose 2.2 per cent during the week marred by volatility due to concerns around raising of US debt limit, inflation, surging energy prices and China’s regulatory woes.

Banking and other rate-sensitive stocks ended mixed, even as the central bank said it will remain accommodative even as the economy recovers. “The status quo on policy rates is in line with expectations. However, the Reserve Bank of India was expected to turn a bit hawkish given the strong pick up in the economy, no signs of third wave of pandemic and rising inflationary concerns due to surge in energy prices globally,” said Gaurav Dua, head-capital market strategy, Sharekhan by BNP Paribas.

RIL ended 3.84 per cent and made a 287-point contribution to the Sensex’s gain. The company’s market value topped Rs 18 trillion in intraday trade.

IT stocks, too, saw heavy buying ahead of  TCS' results. In contrast, HUL, NTPC, Kotak Bank, Maruti Suzuki, Dr Reddy's and Titan were among the laggards, shedding up to 1.16 per cent.

Rate-sensitive banking and realty indices ended in the red, but auto closed with gains.

The RBI expectedly kept interest rates unchanged at a record low but signalled the start of tapering pandemic-era stimulus measures on economic recovery taking root. The six-member Monetary Policy Committee (MPC) kept the key lending rate or the repo rate unchanged at 4 per cent while the reverse repo rate or the borrowing rate was maintained at 3.35 per cent. It voted 5-1 to retain the accommodative stance, RBI Governor Shaktikanta Das said. The GSAP programme to purchase government securities from the market has been stopped for now to ensure that there is no further infusion of liquidity, he said.