Sensex jumps 390 points to reclaim 50,000-mark, Nifty tops 14,900 in early trade
- The jump in indices comes after the Reserve Bank of India (RBI) kept interest rates unchanged and maintained its accommodative stance to boost growth amid the second wave of coronavirus infections.
Domestic equity indices were in the green on Thursday in early trade with BSE Sensex reclaiming the 50,000-mark while the broader Nifty was meaning the 15,000-level.
At 10:09am, the 30-share Sensex pack was up 390.76 points or 0.79% to trade at 50,052.52 while the 50-share Nifty was trading 122.90 points or 0.83% higher at 14,941.95.
Hindalco and Tata Steel were among the top gainers on the Nifty 50, rising more than 2% each amid steel prices in China hitting a record. HDFC was the top gainer in 30sare barometer Sensex, rising around 2%, followed by Bajaj Finserv, Tech Mahindra, UltraTech Cement, ICICI Bank, SBI and Infosys.
In the previous session on Wednesday, Sensex jumped 460.37 points or 0.94% to finish at 49,661.76 and NSE Nifty advanced 135.55 points or 0.92% to 14,819.05.
"Domestic equities look to be modestly good now. Market has once again defied concerns of rising COVID-19 cases in the country after favourable outcome from RBI’s policy meeting and assurance of no nationwide lockdown by government," said Binod Modi, head-strategy told news agency Reliance Securities.
The jump in indices comes after the Reserve Bank of India (RBI) kept interest rates unchanged and maintained its accommodative stance to boost growth amid the second wave of coronavirus infections. The central bank also pledged to buy ₹1 lakh crore of government bonds this quarter to cap borrowing costs in a bid to support the economy.
RBI on Wednesday also retained the economic growth projection for the current financial year at 10.5%.
"Fears of any pre-mature tightening either through rates or liquidity management by some sections of the market have been put to rest by RBI's dovish tone today," Abheek Barua, chief economist, HDFC Bank was quoted as saying by news agency Reuters on Wednesday.
Other Asian share markets were, however, largely flat but S&P 500 futures climbed 0.3% to a new peak after minutes of the Federal Reserve's last policy meeting, according to which members are in no rush to scale back their $120 billion a month of bond buying, Reuters reported.