Benchmark equity indices Sensex and Nifty rose for the second consecutive session on Friday as the central bank kept interest rates on hold, leading to gains in rate-sensitive sectors such as financials, real estate, and autos.
According to traders, investor sentiment was also boosted by a strong trend in Asian and European markets. The 30-share BSE Sensex rose 364.06 points, or 0.55 percent, to settle at 65,995.63. During the day, it jumped 464.24 points or 0.70 percent to 66,095.81 points. The Nifty rose 107.75 points, or 0.55 percent, to close at 19,653.50. Among the Sensex companies, Bajaj Finserv jumped nearly 6 percent and Bajaj Finance jumped nearly 4 percent. Titan gained 2.98 percent, followed by IndusInd Bank, ITC, JSW Steel, Infosys, Tech Mahindra, Tata Consultancy Services and Maruti. Hindustan Unilever, Asian Paints, Bharti Airtel, and HDFC Bank were left behind. India's central bank left its key interest rate unchanged on Friday as inflation remained a major risk and said it would keep liquidity tight, using bond sales to push prices closer to the target. The Monetary Policy Committee, which includes three members of the central bank and an equal number of foreign members, unanimously decided to keep the repurchase rate (repo) at 6.50 percent for the fourth consecutive meeting. He maintained the "withdrawal from residence" position. In Asian markets, Seoul and Hong Kong finished in positive territory, while Tokyo fell. Trading was green on the European market. US markets ended slightly lower on Thursday. Brent crude, the global oil benchmark, was down 0.02 percent at $83.94 a barrel. The BSE index gained 405.53 points or 0.62 percent to settle at 65,631.57 points on Thursday. The Nifty gained 109.65 points, or 0.56 percent, to close at 19,545.75. Foreign institutional investors (FIIs) bought shares worth Rs 1,864.20 billion on Thursday, according to stock exchange data.