Equity indices soar after RBI holds rates, banks stocks gain

Equity indices soar after RBI holds rates, banks stocks gain

Equity indices soar after RBI holds rates, banks stocks gain

Vedanta, HUL, Axis bank, UPL, SBI, TCS were the other major losers in the Nifty falling between 0.7-1 per cent.

The broader Nifty of the National Stock Exchange gained 196.75 points, or 1.94%, to close at 10,325.15.

A number of stocks from other severely battered sectors too opened on a firm note and are still adding gains.

Most of Asia was also down with Hong Kong's Hang Seng ending with losses of 2.19 per cent, the Shanghai Composite Index finishing 0.18 per cent lower and Singapore tumbling 2.12 per cent. First, in a circular issued to banks on Wednesday, RBI has temporarily relaxed provisioning norms for banks that could help them improving their financial results for the last financial year.

The 30-share index, moving in a tight range for the better part of the session on scattered deals, hit a low of 33,501.37 and a high of 33,697.51 before finishing at 33,626.97 points, up 30.17 points or 0.09 percent. Realty, capital goods, information technology, consumer durables and automobile stocks also had a good outing.

Meanwhile, the Reserve Bank of India (RBI), on Thursday, said that on the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) made a decision to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at six per cent. The reverse repo rate, at which it borrows from banks and absorbs excess liquidity, will remain at 5.75%. Regarding inflation, the committee is retaining its policy stance "neutral" and has suggested upside risks in the near future. It was followed by IDBI Bank (7.94 million), Unitech (5.26 million) and Jaiprakash Associates (4.13 million). For the second half of 2019, it has been cut to 4.4% from 4.5-4.6%.

The RBI said several factors are expected to accelerate the pace of economic activity in 2018-19.

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