Indexes rise higher after day of respite led by stocks and financials


By CNBCTV18.com STI (Update)

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Closing Bell: Benchmarks ended the week on a positive note. With the conclusion of the Reserve Bank of India’s policy decision, the major Indian indices moved off their highs of the day. Today’s gains were driven by information technology and financial services stocks.

Benchmarks ended the week on a positive note. With the conclusion of the Reserve Bank of India’s policy decision, the major Indian indices moved off their highs of the day.

On Friday, Nifty50 closed 0.1% higher at 17,397.5 while Sensex ended at 58,387.93, up 0.2%.

Today’s gains were driven by information technology and financial services stocks.

The indices had risen slightly after the monetary policy outcome.

The central bank’s rate hike, the third in the current fiscal year, came in an effort to stem inflationary pressure and hedge against further depreciation of the rupee.

India’s real gross domestic product (GDP) growth projection for FY2022-23 is maintained at 7.2%, while the RBI has also maintained its retail inflation forecast for FY2022-23. course at 6.7%.

Naveen Kulkarni, Chief Investment Officer, Axis Securities, said: “As underlying inflation continues to be well above the upper tolerance limit, the RBI has increased the repo rate by 50 basis points. , which is broadly in line with market expectations.

As domestic inflationary pressures appear to be gradually easing, he was quick to warn that geopolitical tensions, volatility in global financial markets and the emerging risk of a global recession remained key.

Thus, the RBI kept its inflation estimates for FY23, slightly modifying the estimates for the second and third quarters, expecting relief only from the fourth quarter. It also stuck to its 7.2% growth estimate for FY23, he said.

Stock reaction

Shares of SpiceJet soared 9% on Friday after the airline and EaseMyTrip announced they had reached a general sale agreement. Another piece of positive news that has made the rounds is that SpiceJet is in talks with potential investors for a possible sale of a stake in the airline.

Global Markets

Investors have been eagerly awaiting U.S. jobs data that will give another clue to the health of the world’s largest economy, as warning signs erupted in bond markets and oil sagged. was trading around its lowest level since the start of the war in Ukraine.

MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 1% as major European indices traded in the red.

S&P futures were flat, pointing to a tepid start for US equities later in the day.

(With agency contributions)


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