Sensex jumps 1,017 pts on RBI's 50-bps hike; Nifty nears 17,100; banks lead

CLOSING BELL: The benchmark indices snapped their seven-day losing streak as the RBI delivered a 50-basis point repo rate hike, and underscored the resilience of the Indian economy in his statement

CLOSING BELL

Stock market highlights: The Reserve Bank of India's in-line monetary policy action lifted equities on Friday. The benchmark indices snapped their seven-day losing streak as the RBI delivered a 50-basis point repo rate hike, and underscored the resilience of the Indian economy in his statement. 

At the index level, the S&P BSE Sensex climbed 1,313 points intra-day before cooling off a little to end at 57,427, up 1,017 points or 1.8 per cent. The NSE Nifty50, meanwhile, inched closer to 17,200 level before ending at 17,094, up 276 points or 1.64 per cent.

26 of the 30 Sensex constituents, and 41 of the 50 Nifty constituents closed in the positive zone led by Hindalco, Bharti Airtel, IndusInd Bank, Bajaj Finance, Kotak Bank, Titan, HDFC Bank, Bajaj Finserv, Tata Steel, and ICICI Bank. These shares rallied between 2 per cent and 5.6 per cent.

The list of losers included Asian Paints, Coal India, Dr Reddy's Labs, Britannia, Adani Enterprises, and ITC. 

Among sectors, the Nifty PSU Bank, and Private Bank indices advanced around 3 per cent each, followed by the Nifty Metal, and Financial Services indices, up 2 per cent each.

RBI Policy outcome :: Key highlights

The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) announced a 50 basis points (bps) hike in the repo rate to 5.90 per cent on Friday in order to bring elevated inflation back to its target. Taking Friday’s rate hike into consideration, the MPC has hiked the benchmark policy rate by 190 bps in the current financial year. READ MORE

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Inflation hits 10% in 19 EU nations using euro, electricity prices up

Inflation in the European countries using the euro currency has broken into double digits as prices for electricity and natural gas soar, signalling a looming winter recession. READ MORE

4:10 PM

GLOBAL CHECK | European markets edge up amid strong global cues

4:05 PM

GLOBAL CHECK | US equity futures perk up; Dow Futures up 200pts

4:00 PM

MARKET COMMENT: Vinod Nair, Head of Research at Geojit Financial Services

An in-line rate hike along with the RBI’s confidence in the economy’s growth momentum aided the domestic market to alter the seven-day losing streak. The decision to retain inflation at 6.70% with a marginal cut but a healthy GDP forecast of 7.0% indicates the resilience of the Indian economy. Although the commentary warned about prevailing risks to the domestic economy from the global economy, the MPC refrained from sounding very hawkish. Continuation of the policy stance as 'withdrawal of accommodation' indicates more rate hikes in the future, but data-driven.

3:55 PM

Over 2,000 stocks advanced in trade whereas 1,112 declined

3:50 PM

Adani Enterprises, Dr Reddy's, Cipla top Nifty50 losers

3:48 PM

Hindalco, Bharti Airtel, IndusInd Bank top Nifty50 gainers

3:45 PM

Nifty PSU Bank jumps 3% led by Canara Bank, PNB

3:42 PM

Broader markets upbeat; India VIX slips over 6%

3:38 PM

All sectoral indices close in positive territory

3:36 PM

SENSEX HEATMAP: Only 4 out of 30 index constituents close in red

3:34 PM

CLOSING BELL: Nifty50 closes above 17,050, up over 250pts

3:32 PM

CLOSING BELL: Sensex snaps 7-day losing streak, closes over 1,000pts higher

3:25 PM

EXPERT ON RBI POLICY | Dr Rashmi Saluja, Executive Chairperson, Religare Enterprise

RBIs confidence on growth has led it to hike interest rates to deal with the global storm. With growth rate forecast for FY23 still at 7% despite series of rate hikes makes India an oasis in the desert. As far as inflation is concerned, the statistics revealed by RBI pertaining to crops is comforting. With crude oil prices on a downward trajectory we believe most of the hike in interest rates in this cycle is behind us. We believe that RBI and Government are handling the economy far better than there counterparts in other countries.

3:21 PM

Housing sales up 41% in July-Sept period across 7 cities: Anarock Report

Sales of residential properties increased 41 per cent to 88,234 units in July-September this year across seven major cities, property consultant Anarock said on Friday. READ MORE