The Indian stock market rose on Friday on the back of the Reserve Bank of India’s monetary policy decision. The Sensex is up 297 points and the Nifty 50 index is trading above its key psychological level of 17,850 on gains by Tata Motors, Reliance Industries, Infosys, Larsen & Toubro and Tata Consultancy Services. Meanwhile, as Chinese stocks returned from a week-long holiday on Friday, investors watched key US job data for new insights into the Federal Reserve tapping time, while watching the global rally.
At 9:21 am, the Sensex was up 176 points at 59,854 and the Nifty 50 was up 88 points at 17,878.
The monetary policy group is widely expected to maintain the status quo on the repo rate to support growth, but some analysts see a slim potential for a token increase in the reverse repo rate.
Market participants will keep an eye on the Reserve Bank’s guidance on cash flow, with surplus money in the banking system recently exceeding Rs 10 lakh crore.
Meanwhile, seventeen of the 19 sectoral benchmarks compiled by BSE traded higher by 2% on the S&P BSE Metal Index, making the acquisition visible throughout. The auto, oil and gas, capital goods, information technology, industrial, basic goods and consumer goods and services indices also rose 0.6-1.2 per cent.
On the contrary, the Power and Realty indices were among the losers.
S&P BSE MidCap Index was up 0.45 per cent and S&P BSE Small Cap Index was up 0.6 per cent.
Tata Motors topped Nifty gains, up 4 per cent to 52-week high of Rs. Reached 398. -Weight ”, which has been maintained since 2017, is expected to generate a full-year profit for the automaker’s Indian business after eight years of losses.
Tata Steel, Hindalco, JSW Steel, ONGC, Grossim, Eicher Motors, Larsen & Toubro, Indian Oil, Mahindra & Mahindra, SBI Life, Bajaj Auto and Dr Reddy’s Labs rose 1-3.55 per cent.
On the upside, Coal India, HCL Technologies, Asian Paints, Hindustan Unilever, HDFC and HDFC Bank were among the losers.
The overall market width was positive as 1,818 shares advanced while 809 declined on the BSE.