Equity indices marched higher for the fourth session on the trot on Thursday after the RBI left the policy rates unchanged but maintained its accommodative stance to shore up growth.
The 30-share BSE Sensex settled 163.37 points, or 0.40 per cent, higher at 41306.03. The broader NSE Nifty rose 48.80 points, or 0.40 per cent, to 12137.95.
Rate-sensitive financial, banking and auto stocks rallied, with BSE Finance spurting up to 1.21 per cent. However, realty settled in the red.
IndusInd Bank was the top gainer in the Sensex pack, climbing 4.85 per cent, followed by SBI, Bajaj Finance, Bharti Airtel, HDFC, Axis Bank and Hero MotoCorp.
The broader BSE mid-cap and small-cap indices rose up to 0.81 per cent.
“Monetary policy action from the central bank on rates came on expected lines while measures to spur growth in credit came as a surprise. Removal of CRR for loans made to specific sectors and open market operations will support the economy with more credits at lower rates,” said Vinod Nair, head of research, Geojit Financial Services.
“Inflation rate is forecasted to subsequently reduce in the coming months and provide more room for RBI to cut interest rates as and when necessary,” Nair added.
