Indian indices hit record highs on Friday, ahead of a central bank decision that could potentially leave interest rates at record lows, with investors keeping a close eye on the apex bank’s stance on liquidity. While Nifty crossed 15,000 mark for the first time, Sensex touched a record high of 51,000 mark in the opening trade. So far today, Sensex has moved in the range of 50,800.21-51,073.27, while Nifty has touched a high of 15,014.65 and low of 14,944.00
The Reserve Bank of India keeps repo rate unchanged at 4%. Reverse repo rate also remains unchanged at 3.35%.
The Nifty PSU Bank index, which tracks state-run lenders, jumped more than 6%, with shares of State Bank of India surging 10% to hit an all-time high. The lender on Thursday logged a 7% fall in quarterly net profit but beat analysts’ estimates.
Signs of recovery have strengthened further & list of normalizing sectors is expanding, says RBI governor Das. Capacity utilization in the manufacturing sector improved to 63.3% in Q2 Vs 47.3% in Q1. FDI & FPI investments have surged in recent months, reposing faith in the Indian economy.
RBI Governor says that signs of recovery have strengthened further & list of normalizing sectors is expanding.
Earlier this week, in the federal budget, India announced additional market borrowing and proposed doubling healthcare spending, recapitalisation of public-sector banks and divestment of some state-owned lenders, in a bid to bolster the economy.