Mumbai, India (BBN)-The Nifty and the Sensex continued their upward trend after discounting the status quo on interest rates by the RBI with both the indices opening and trading in the green.
The Nifty opened 50 points up at 8,152, while the Sensex opened 130 points up at 26,367, reports The Hindu Business Line.
At 10:00am, the 30-share BSE index Sensex was up 348.13 points or 1.33 per cent at 26,585 and the 50-share NSE index Nifty was up 112.1 points or 1.38 per cent at 8,214.15.
Kamlesh Rao, CEO, Kotak Securities, said: “Monetary policy committee’s status quo stance on the rate has been already discounted by the market. This move is slightly negative for the rate sensitive sectors. However, the announcement on CRR is positive for banks.The next RBI policy date is slated for 7-8 February, post FY18 Budget announcement on 1st February, 2017. We expect the MPC to cut rates in the next policy meet depending on the fiscal outcome. There are strong feelers that Fed will almost certainly increase the rates in the upcoming December meet. If the Fed increases the rates and we would be reducing the rates, there could be some pressure on the currency and which could then have an inflationary effect on the economy. Apart from triggering bouts of high volatility in the financial markets, these macroeconomic implications for emerging markets economies could trigger the FIIs to stay invested in the US markets.”
Barring Nifty pharma, all the broader and sectoral indices were trading in the green. Volatility was high with the India Vix trading at 15.9075, down 5.56 per cent.
Among BSE sectoral indices, auto index gained the most by 2.36 per cent, metal 2.27 per cent, consumer durables 1.87 per cent and infrastructure 1.56 per cent.
Top five Sensex gainers were Tata Motors (+3.77%), Tata Steel (+2.86%), Maruti (+2.42%), Adani Ports (+2.42%) and Hero MotoCorp (+2.18%), while the only two losers were Dr Reddy’s (-0.73%) and NTPC (-0.07%).