Sensex snaps 3-day losing run on RBI policy, rises 412 points; yields up 2%

Benchmark indices snapped their three-day losing run and settled 0.8 per cent higher on Friday. Investors heaved a sigh of relief as the Reserve Bank of India decided to keep the interest rates unchanged and maintained ‘accommodative’ stance despite liquidity unwinding by global central banks. The RBI also announced revised inflation and GDP growth forecasts in-line with market expectations. Yields on 10-year bonds, however, hit multi-year high of 7.075, inching up 2.3 per cent.

Against this backdrop, the S&P BSE Sensex climbed 571 points from the day’s low to end at 59,447, up 412 points against Thursday’s close. The NSE Nifty, too, advanced 145 points to settle at 17,784 in a broad-based rally. Both the indices had hit intra-day highs of 59,654 and 17,843, respectively.

The broader BSE MidCap and SmallCap indices rose in tandem with the frontline indices and closed 0.9 per cent higher each.

Among individual stocks, ITC ended as the top gainer as it advanced 4.7 per cent on the Sensex index. The stock of the cigarettes to fast-moving consumer goods (FMCG) major has rallied 24 per cent in the past six week.

That apart, Dr Reddy’s Labs, M&M, Tata Steel, Titan, Reliance Industries, Asian Paints, Nestle India, and IndusInd Bank were the other gainers, rising upwards of 1.5 per cent each.

On the downside, only Tech M, NTPC, Maruti Suzuki, Sun Pharma, and HCL Tech were the laggards, down up to 1.2 per cent.

Sectorally, the Nifty Metal index was the biggest gainer, rising 2 per cent. Meanwhile, the Nifty IT index ended wee bit in the red.

Shares of ITC hit a fresh 52-week high of Rs 265.90, up 4 per cent on the BSE in Friday’s intra-day trade, on the expectation of healthy earnings. They surpassed their previous high of Rs 265.30, touched on October 18, 2021.

Bharat Dynamics has zoomed 29% in two days on heavy volumes as the stock hit a new high. The price surged 35 per cent in six trading days after exchanging MoU with UAE firm to explore new business opportunities.

Shares of Adani Green Energy hit a new all-time high at Rs 2,350, on rallying 9 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market ahead of the board meeting today for considering fundraising proposal.

Ruchi Soya gained 8% after listing of FPO shares; stock has risen 17% in 2 days. Around 66.15 million equity shares, allotted in follow-on-public offering, started trading on the exchanges from today.

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