Indian stock benchmarks recovered strongly after two sessions of sharp losses a day ahead of the Reserve Bank of India’s monetary policy decision due on Wednesday, led by interest-rate sensitive stocks. The Sensex rose a whopping 1,158 points, or 2 percent, and the Nifty 50 index rose above the all-important psychological level of 17,250 at its highest level for the day. ICICI Bank, HDFC Bank, HDFC, Infosys and Reliance Industries were among the top players in the Sensex with 30 stocks.
The Sensex climbed 887 points to close at 57,634 and the Nifty 50 index rose 264 points to close at 17,177.
Investor sentiment was boosted on Tuesday with hopes that the Reserve Bank of India will likely hold off on raising its key lending and borrowing rates on Wednesday as it strikes a cautious note amid the spread of the Omicron coronavirus variant, economists and analysts said. market participants .
Fifty economists, polled by Reuters in a Dec. 1-3 poll, expect the RBI to keep its benchmark repo rate at 4.00 percent.
Several economists believe that given the uncertainties of the new Omicron variant of the economy, it was better to take a wait and see approach despite inflationary pressures.
Meanwhile, purchases were visible across all sectors as all 15 sector indicators compiled by the National Stock Exchange finished higher, led by the 3 percent gain of the Nifty Bank index.
Nifty Metal, PSU Bank, Private Bank, Realty, IT, Media, Financial Services and Auto indices also rose between 1.6 and 3 percent.
Mid- and small-cap stocks also witnessed buying interest, as the Nifty Midcap 100 Index rose 1.4 percent and the Nifty Smallcap 100 Index rose 1.1 percent.
Hindalco was the top winner, the stock rose 5.15 percent to Rs 443. Tata Steel, Axis Bank, ICICI Bank, Tata Motors, Adani Ports, JSW Steel, Kotak Mahindra Bank, Titan, State Bank of India, Bajaj Finance and Maruti Suzuki also rose 2-4 percent.
On the other hand, Britannia Industries, Cipla, Divi’s Labs, Asian Paints and Indian Oil were among the notable losers.
Overall market size was extremely positive as 2,337 stocks finished higher while 943 closed lower on the BSE.