BENGALURU: Indian shares rose on Friday, led by gains in rate-sensitive sectors such as auto, financial and real estate, after the central bank, as expected, kept key interest rates steady and maintained its growth forecasts.
The NSE Nifty 50 index closed 0.55% higher at 19,653.50 points, while the S&P BSE Sensex rose 0.55% to 65,995.63. Both benchmarks posted weekly gains, breaking a two-week losing streak.
The Reserve Bank of India kept its key interest rate at 6.50% and left its inflation and economic growth forecasts unchanged for the 2024 financial year. The Indian rupee was largely unchanged, while bond yields rose.
“The RBI’s decision to maintain its inflation forecast has created optimism in the markets that inflation will come under control,” said Gaurav Dua, head of capital markets strategy at Sharekhan at BNP Paribas.
Twelve of the thirteen major sector indexes advanced, with real estate rising 3.08%.
Auto stocks rose 0.47% and heavyweight financials rose 0.71%.
“The stable interest rate environment will help keep offerings competitive and affordable. This move will improve sentiment,” the bank said Tribhuwan AdhikariCEO of LIC Housing Finance.
Bajaj Finance rose 4.05% on non-bank lenders’ plans to raise funds. The top shareholder Bajaj Finserv rose 5.97%, surpassing the Nifty 50 gainers, as it would receive convertible warrants from Bajaj Finance as part of the fundraising plan.
Kalyan Jewelers rose 10.13% after the company reported consolidated revenue growth of 27% for the July-September quarter.
Pharmaceutical company Valiant Laboratories traded at a 16% premium to its issue price in its trading debut.
Investors’ attention will shift to the US jobs report, due after the Indian market closes, for clues about the Federal Reserve’s interest rate trajectory.
The NSE Nifty 50 index closed 0.55% higher at 19,653.50 points, while the S&P BSE Sensex rose 0.55% to 65,995.63. Both benchmarks posted weekly gains, breaking a two-week losing streak.
The Reserve Bank of India kept its key interest rate at 6.50% and left its inflation and economic growth forecasts unchanged for the 2024 financial year. The Indian rupee was largely unchanged, while bond yields rose.
“The RBI’s decision to maintain its inflation forecast has created optimism in the markets that inflation will come under control,” said Gaurav Dua, head of capital markets strategy at Sharekhan at BNP Paribas.
Twelve of the thirteen major sector indexes advanced, with real estate rising 3.08%.
Auto stocks rose 0.47% and heavyweight financials rose 0.71%.
“The stable interest rate environment will help keep offerings competitive and affordable. This move will improve sentiment,” the bank said Tribhuwan AdhikariCEO of LIC Housing Finance.
Bajaj Finance rose 4.05% on non-bank lenders’ plans to raise funds. The top shareholder Bajaj Finserv rose 5.97%, surpassing the Nifty 50 gainers, as it would receive convertible warrants from Bajaj Finance as part of the fundraising plan.
Kalyan Jewelers rose 10.13% after the company reported consolidated revenue growth of 27% for the July-September quarter.
Pharmaceutical company Valiant Laboratories traded at a 16% premium to its issue price in its trading debut.
Investors’ attention will shift to the US jobs report, due after the Indian market closes, for clues about the Federal Reserve’s interest rate trajectory.
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