New Delhi: Markets opened firm on Friday in line on the back of expectations that RBI will keep repo rates unchanged at 4 per cent at the RBI monetary policy review. The BSE Sensex surged 438.69 points, or 0.74 per cent at 10:45 am to touch 60,116.52 while Nifty was at 17,926.95, up 136.60 points, or 0.77 per cent.
The markets responded positively to the RBI announcement with the benchmark index holding above the 60,000 mark and Nifty approaching a new record high. Auto, metal and oil & gas indices were up 1 per cent each. RBI governor Shaktikanta Das has closed policy statement; keeps policy rates unchanged; status quo on accommodative stance.
Market indices were down from highs but still comfortably in the green. Nifty was above 17,800 while Sensex was closing in on 59,900.
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Investors are keeping a watch over the US jobs report. One of the key announcements affecting the market will be the TCS announcement of its quarterly results. The rupee opened on a weak note and fell below the 75 per US dollar level in early trade on Friday as rising crude prices and the strength of the American currency in the overseas market weighed on investor sentiments.
The repo rate was unchanged at 4 per cent and the reverse repo rate remained unchanged at 3.35 per cent. The RBI left the interest rates unchanged despite rising inflationary pressures and the depreciation of the rupee.
High-frequency indicators suggest economic activity has gained momentum, said RBI governor. Core inflation remains sticky. July-September Consumer price Index (CPI) inflation was lower than anticipated
The recovery of the Indian economy is gaining traction; it’s in better shape than the last MPC meeting. Growth impulses strengthening, inflation trajectory favourable than anticipated; hope to sail towards normal times, due to resilience of economic fundamentals of our economy, said the governor.
(With inputs from PTI)
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