Thursday, 8 April 2021
The benchmark indices rallied nearly 1 per cent after the Reserve Bank of India (RBI) pledged to maintain an accommodative stance for as long as necessary to support growth, amid a new wave of infections.
The Sensex rose 460 points, or 0.94 per cent, to close at 49,662, while the Nifty50 added 136 points, or 0.92 per cent, to end the session at 14,819.
Banking stocks contributed to gains, with the Bank Nifty soaring 1.5 per cent. Other rate-sensitive sectors also performed well, with the Nifty Auto gaining 1.6 per cent and Nifty Realty rising 0.96 per cent.
The RBI’s Monetary Policy Committee held the benchmark repurchase rate at a record low of 4 per cent — a decision predicted by all 30 economists surveyed by Bloomberg.
Sampath Reddy, Chief Investment Officer at Bajaj Allianz Life, said: “The policy has been dovish as supported by fall in bond yields. This should benefit the equity markets as borrowing costs will be in check for some time.”