Sensex rises 570 pts, Nifty above 10,300 as RBI holds policy rates

The market indices on Thursday rallied after the Reserve Bank of India (RBI) kept its repo rate and reverse repo rate unchanged at 6 percent and 5.75 percent respectively.

The Sensex rose 571.31 points or 1.73 percent to 33,590.38 and the Nifty gained 185.90 points or 1.84 percent at 10,314.30.

Shares on BSE advanced, with all sectoral indices were in the green.

Nifty Bank, Auto, Metal and Realty were up 2-4 percent.

The RBI said several factors are expected to accelerate the pace of economic activity in 2018-19.

The apex bank projected CPI inflation for 2018-19 to stand at 4.7-5.1 percent in first half of 2018-19 and 4.4 percent in second half, including the HRA impact for central government employees, with risks tilted to the upside.

The MPC noted that while global economic activity and trade have gathered momentum, financial market volatility, potential trade wars, pose a threat to the outlook. Moreover, crude oil prices have become volatile in the recent period. Considerable uncertainty persists about the pace of normalization.

Meanwhile, the RBI has maintained status-quo on the key short-term borrowing rates or repo rate in its last three policy meets before today as well.