Markets continue to rally on RBI policy fillip; Sensex rises 164 points

Domestic markets rose for a fourth consecutive day after the Reserve Bank of India (RBI) stepped up efforts to support credit growth while keeping interest rates unchanged. The Sensex gained 0.4 per cent, or 164 points, to end at 41,306 — the highest since January 24. The Nifty rose 45 points, or 0.4 per cent, to close at 12,134.

The RBI kept policy rates steady for a second straight meeting, but left the option open for further easing. Surging inflation and faltering economic growth has made monetary policy action a tough balancing act for the regulator. 

Investor sentiment was lifted by RBI’s