Sensex, Nifty at day's high; IT stocks advance

The domestic equity barometers were currently at the day's high in mid morning trade. The Nifty marched towards the key 17,500 mark. Asian markets advanced. Investors cheered the RBI Monetary Policy Committee (MPC)'s decision to keep the key interest rates unchanged.

At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 850.1 points or 1.48% to 58,483.75. The Nifty 50 index added 251.20 points or 1.46% to 17,427.90.

In the broader market, the S&P BSE Mid-Cap index rose 1.08% while the S&P BSE Small-Cap index added 1.48%.

The market breadth was strong. On the BSE, 2365 shares rose and 719 shares fell. A total of 151 shares were unchanged.

RBI MPC meet outcome:

The Reserve Bank of India (RBI) kept the policy repo rate unchanged while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 8 December 2021.

RBI kept repo rate unchanged at 4% and maintained an accommodative stance. Reverse repo rate stands at 3.35%. The Marginal Standing Facility (MSF) rate is at 4.25%

The MPC said the policy stance will remain "accommodative" until there is sustainable recovery in the economy.

RBI maintained the FY22 GDP growth forecast at 9.5%. It retained CPI inflation projection at 5.3% in 2021-22.

Buzzing Index:

The Nifty IT index rose 1.83% to 35,917.60, extending gains for second day. The index has added 2.98% in two sessions.

MindTree (up 3.03%), Mphasis (up 2.85%), L&T Technology Services (up 2.34%), HCL Tech (up 2.11%), Infosys (up 2.01%), Coforge (up 1.95%), Wipro (up 1.91%), TCS (up 1.38%), Tech Mahindra (up 1.29%) and Larsen & Toubro Infotech (up 1.08%) advanced.

Stocks in Spotlight:

JSW Steel rose 2.08% to Rs 674.40. The company's crude steel production for month of November 2021 stood at 14.60 lakh tonnes compared to 13.32 lakh tonnes in November 2020, recording a growth of 10%. On sequential basis, the company's crude steel production rose a mere 2%.

Polyplex Corporation jumped 4.68% to Rs 1,915 after the company commenced operations of 10.6 m Biaxially oriented polypropylene (BOPP) film line in Indonesia with a capacity of 60 KTPA (kilo tonnes per annum).

Global markets:

Asian stocks were trading higher on Wednesday, continuing a global relief rally as markets found positive news in early reports about the potential impact of the Omicron variant.

Japan's economy in the July-September period contracted deeper than initially estimated last quarter amid a summer surge in COVID-19 cases that triggered emergency restrictions. Japan's economy in the July-September period shrank an annualized real 3.6% from the previous quarter, downgraded from the 3% contraction initially reported, government data showed Wednesday.

Meanwhile, British drugmaker GSK reportedly said on Tuesday its antibody-based COVID-19 therapy with U.S. partner Vir Biotechnology is effective against all mutations of the new Omicron coronavirus variant.

US stocks jumped for a second day, continuing their rebound from a recent rough patch, as investors grew less fearful of the potential economic impact from the new omicron coronavirus variant.

The US trade deficit narrowed sharply in October as exports soared to a record high, potentially setting up trade to contribute to economic growth this quarter for the first time in more than a year. The commerce department said on Tuesday that the trade gap plunged 17.6% to $67.1 billion.

The House passed a bill that would allow the Senate to raise the debt ceiling with a simple majority vote. The U.S. is expected to hit its debt ceiling around December 15, which raises the threat of a default. Once the legislation gets through the Senate and to President Joe Biden's desk, Congress can hold separate votes to increase the U.S. borrowing limit.

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