Sensex rebounds 377 points, Nifty closes above 17,850 after small rate hike by RBI

Ending its two-day slide, the 30-share BSE Sensex rebounded by 0.63% to close at 60,663.79 with 24 of its constituents posting gains

February 08, 2023 04:35 pm | Updated 05:37 pm IST - Mumbai

Among Sensex stocks, Bajaj Finance rose the most by 3.14%. Ultratech Cement, Reliance Industries, Infosys, and Bajaj Finserve were among the major gainers. L&T declined the most by 1.62%, followed by Bharti Airtel, Axis Bank, Kotak Bank and Hindustan Unilever.

Among Sensex stocks, Bajaj Finance rose the most by 3.14%. Ultratech Cement, Reliance Industries, Infosys, and Bajaj Finserve were among the major gainers. L&T declined the most by 1.62%, followed by Bharti Airtel, Axis Bank, Kotak Bank and Hindustan Unilever. | Photo Credit: Reuters

Benchmark equity indices Sensex and Nifty closed higher by more than 0.5% on Wednesday following buying in IT, financial and oil stocks after the RBI slowed down the pace of interest rate hikes.

Ending its two-day slide, the 30-share BSE Sensex rebounded by 377.75 points or 0.63% to close at 60,663.79 with 24 of its constituents posting gains.

The broader Nifty of the NSE spurted by 150.20 points or 0.85% to settle at 17,871.70, riding on a rally in Adani Enterprises, Adani Ports and HDFC Life.

Vinod Nair, Head of Research at Geojit Financial Services said, "Bulls took charge of the markets as the RBI’s MPC meeting delivered a smaller rate hike in line with market expectations. The RBI has taken a more optimistic view on domestic growth by increasing the GDP forecast while cautiously keeping CPI inflation at 5.3% for FY24".

Among Sensex stocks, Bajaj Finance rose the most by 3.14%. Ultratech Cement, Reliance Industries, Infosys, Wipro, HCL Tech, TCS, Bajaj Finserve, Tata Motors, Tech Mahindra, Titan and Maruti were among the major gainers.

L&T declined the most by 1.62%, followed by Bharti Airtel, Axis Bank, Kotak Bank and Hindustan Unilever.

The Reserve Bank of India slowed the pace of interest-rate increases for the second straight time when it on Wednesday expectedly increased borrowing costs by 25 basis points.

The RBI also projected retail inflation to ease to 5.3% in the next fiscal from 6.5% this year on assumptions of lower imported inflation.

It also upped its GDP growth estimate to 7% from 6.8% for FY23 and pegged the growth at 6.4% for the next fiscal.

Shares were mixed in Asia on Wednesday after U.S. stocks rallied following comments by the Federal Reserve chair signalling that a strong jobs report would not by itself sway its stance on interest rates hikes.

Hong Kong, Sydney and Seoul rose while Tokyo and Shanghai declined. U.S. futures edged lower while oil prices were little changed.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth ₹2,559.96 crore, according to exchange data.

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