D-Street Cheers RBI's Status Quo Decision; Sensex Ends 1016 Points Higher

Extending gains to the second day, Nifty hit day's high of 17,485 after RBI's Monetary policy outcome revealed today was taken positively by the street. At a time when there have surfaced concerns around the new Covid variant, RBI maintained status quo while sticking to an 'accommodative' monetary policy stance. Accommodative stance implies that the RBI will go on to reduce the current rate and infuse liquidity into the system as and when required.

At the close, Nifty ended higher by 1.71 percent at 17470, while Sensex with gains of 1016 points settled at 58,650.

After the policy announcement, among the rate sensitive indices, auto pack towards the later part of the trade emerged as the most resilient with good buying seen in auto ancillary stocks. Notable gainers from the Nifty Auto index gaining in between 2-4 percent are Balkrishna Industries, M&M, Bharat Forge among others.

Meanwhile, banks and NBFCs also took the RBI's status quo decision positively as it shall provide the fillip to lending.

The top gainers leading the Nifty pack include Bajaj Finance, Maruti Suzuki, Hindalco, Tata Motors and SBI, while laggards have been HDFC Life, Kotak Mahindra, Power Grid, Divis Labs and IOC.
Reliance Industries among the heavyweights also settled higher by 1.64% after the company formed a strategic JV with the Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ).

Other sectoral indices also ended in the green with most gains in the PSU Bank index, followed by media and auto.

"Positive global cues coupled with the continuation of an accomodative policy stance of the RBI by holding rates fired up the bulls today even as the Central Bank decided to enhance the variable reverse repo rate auctions to rebalance liquidity", said of Head of Research at LKP Securities.

Meanwhile, European indices traded mixed with German DAX down by 0.26 percent.

GoodReturns.in