Stock markets cheer RBI monetary policy; Sensex soars 460 points
Feb 10, 2022
Mumbai (Maharashtra) [India], February 10 : The Indian equities markets benchmark Sensex closed 460 points higher on Thursday after the Reserve Bank of India (RBI) decided to keep repo and reverse repo rates unchanged in the first monetary policy for the 2022 calendar year in order to support the economic growth.
The 30 stock S&P BSE Sensex closed at 58,926.03 points, which is 460.06 points or 0.79 per cent higher from its previous day's close at 58,465.97 points.
Earlier the Sensex opened in the positive at 58,810.53 points and surged to a high of 59,060.24 points. The Sensex slipped to a low of 58,332.28 points in the intra-day.
The broader Nifty 50 of the National Stock Exchange closed 142.05 points or 0.81 per cent higher at 17,605.85 points.
The benchmark indices rallied sharply after RBI Governor Shaktikanta Das announced that the central bank's Monetary Policy Committee (MPC) has decided to maintain a status quo on key policy rates for the 10th time in a row.
The RBI has kept the repo rate, the interest rate at which the RBI lends short-term funds to banks, unchanged at 4 per cent. The reverse repo rate, the interest rate at which the RBI borrows from banks, remains unchanged at 3.35 per cent.
The marginal standing facility (MSF) rate and the Bank Rate also remain unchanged at 4.25 per cent.
The RBI has also decided to maintain 'accommodative' stance in order to give priority to GDP growth.
The RBI's decision has sent positive signal to the markets. There was strong buying support in metal, power, IT and banking & financial stocks.
Tata Steel surged 2.11 per cent to Rs 1248.25. Infosys soared 1.80 per cent to Rs 1768.85. HDFC Bank closed 1.77 per cent higher at Rs 1524.15.
HDFC 1.64 per cent higher at Rs 2476.40; Kotak Bank 1.60 per cent higher at Rs 1862.40; Mahindra & Mahindra 1.49 per cent higher at Rs 853.10; Power Grid Corporation 1.31 per cent higher at Rs 212.05; NTPC 1 per cent higher at Rs 136.40 and State Bank of India 0.99 per cent higher at Rs 540.45 were among the major Sensex gainers.
Only four of the 30 scrips that are part of the benchmark Sensex closed in the red. Maruti Suzuki slipped 1.64 per cent to Rs 8804.70. UltraTech Cement fell 0.42 per cent to Rs 7471.30. Nestle India and Reliance Industries also closed in the red.
