Sensex skyrockets 1,300 points; rate-sensitive stocks surge up to 8% post RBI policy decision
Stocks in rate-sensitive sectors such as banking, finance, auto, and real estate soared by as much as 8% following the RBI's decision to maintain the interest rate unchanged.
Post the monetary policy action, benchmark equity indexes rose over 1.5%. At 11:50 am, the Sensex was trading 1,316 points or 1.76% higher at 76,403, while NSE Nifty50 was up 345 points or 1.51% at 23,166.
The market capitalisation of all listed companies on BSE surged by Rs 5.54 lakh crore to Rs 421.43 lakh crore.
IT stocks were the top gainers with Wirpo rising over 5%, Infosys 3%, Tech Mahindra, TCS, and HCL Tech rising between 2-3% each. Other top gainers from the Sensex pack were Bajaj Finance, Ultratech Cement, and Tata Steel.
The rate-setting panel decided to maintain the repo rate at 6.5%, continuing the stance of 'withdrawal of accommodation' due to ongoing concerns regarding food inflation and global uncertainties. Meanwhile, the Monetary Policy Committee (MPC) projected the real GDP growth for FY25 to be 7.2%, up from 7%
«As anticipated, the Reserve Bank of India (RBI) maintained its key policy rates and liquidity stance unchanged during the June 2024 monetary policy review. Several indications from the governor's speech suggest that the RBI is unlikely to commence rate cuts soon. The upward revision in growth, the expectation of a non-linear disinflationary process, and a clear signal that the RBI will not mirror the Federal Reserve's anticipated monetary policy easing, imply that a rate cut in 2024 is improbable,» said Sujan
