After seven consecutive sessions of losses, the domestic benchmark indices rose on Friday, buoyed by the Reserve Bank of India’s assurance after its September 30 policy meeting to take steps to protect the economy from the Global upheavals.
Sensex rose 1017 points touching 57,426.92 while its NSE counterpart Nifty went up 276 points to close at 17094.35 points.
The sharp rise in the indices added Rs 3.73 lakh crore to investor wealth as it pushed the market capitalization of BSE-listed stocks higher to over Rs 271.88 lakh crore.
As expected, RBI’s Monetary Policy Committee raised the Repo rate by 50 basis points even as the apex bank remained firm in its stance to focus on withdrawal of accommodation.
Though the RBI Governor admitted that there were geo-political tensions which had consequent impact on growth, he was of the view that the domestic conditions were conducive with the credit growth picking up.
Following the RBI’s assurance to control the economy, the Rupee rose sharply against the US Dollar. The Indian currency was trading at 81.58 against the greenback as against Thursday’s close at 81.86. It may be noted that appreciation of the Rupee brings in capital inflows into the equities.
