Sensex Ends 358 Points Higher; Metal And IT Stocks Witness Buying

Indian share markets continued their momentum during closing hours and ended the day on a strong note. Gains were largely seen in the metal sector and IT sector.

At the closing bell, the BSE Sensex stood higher by 358 points (up 1%) and the NSE Nifty closed higher by 128 points (up 1.2%). The BSE Mid Cap index closed down by 0.1%, while the BSE Small Cap index ended the day up by 0.1%.

Asian stock markets finished on a positive note as of the most recent closing prices. The Hang Seng stood flat and the Nikkei was trading up by 0.1%.

European markets were trading on a negative note. The FTSE 100 was down by 0.1%. The DAX was trading down by 0.5%, while the CAC 40 was down by 0.2%.

The rupee was trading at 71.53 to the US$ at the time of writing.

The rupee witnessed selling pressure today ahead of the Reserve Bank of India (RBI) policy statement that will be released tomorrow.

Market participants are expecting that the central bank could consider cutting rates by 25 basis points (bps). However, any change in the stance could trigger further volatility for the Indian rupee.

This will be RBI governor's first policy meeting and a dovish stance could put the currency under pressure.

In its December monetary policy review, the RBI had kept interest rates unchanged but held out a promise to cut them if the upside risks to the inflation do not materialize.

As per a leading financial daily, S&P Global Ratings said that falling inflation and declining global crude oil prices have created space for the Reserve Bank of India (RBI) to cut interest rates.

As per the news, S&P Global Ratings Economist Vishrut Rana said inflation remains under control and near the low end of the target band, following strong food output, and easing crude oil prices.

The above announcement comes ahead of the sixth bi-monthly policy review for the fiscal that the RBI is set to announce tomorrow.

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