Bulls Charge: Sensex Rises By Over 1,000 Points

Guwahati: The Reserve Bank of India (RBI) raised the policy repo rate by 50 basis points on Friday which was fully anticipated by the markets and the benchmark Sensex index of the Indian stock market increased by more than 1,000 points.

The 30-stock S&P BSE Sensex increased 1,016.96 points, or 1.80%, from its previous day’s finish of 56,409.96 points to 57,426.92 points. The Sensex fell to a low of 56,147.23 points in the early morning session after beginning the day’s trading in the red at 56,240.15 points.

The markets experienced a significant surge following the RBI’s announcement of its monetary policy. The intra-day high for the Sensex was 57,722.63 points. The Sensex closed in the green for the first time in the previous eight trading sessions.

The Monetary Policy Committee of the RBI voted to increase the policy repo rate by 50 basis points or 0.50 percent, to 5.90 percent, in line with expectations.

The Monetary Policy Committee (MPC) convened on September 28, 29, and 30 of 2022. According to RBI Governor Shaktikanta Das, the MPC resolved by a majority of five out of six members to raise the policy repo rate by 50 basis points to 5.9% with immediate effect based on an evaluation of the macroeconomic environment and its outlook.

As a result, the Bank Rate and the marginal standing facility (MSF) rate have both been increased to 6.15 percent. The standing deposit facility (SDF) rate is now 5.65 percent.

The MPC also resolved to continue concentrating on the withdrawal of accommodation to make sure that inflation stays within the goal going forward while promoting growth, according to the governor. This decision was made by a majority of 5 out of 6 members.

The National Stock Exchange’s Nifty 50, a more inclusive index, rose 276.25 points, or 1.64 percent, to 17,094.35 points.

The Nifty fell to a low of 16,747.70 points in the morning trade after opening the day in the red at 16,798.05 points. The intra-day high for the Nifty was 17,187.10 points.

There was widespread support for buying. The benchmark Sensex’s 30 equities all closed in the black, although just five of them did.

Bharti Airtel increased by 4.49% to Rs 799.75. To Rs 1186.30, IndusInd Bank increased 3.78 percent.

Reliance Industries Limited, a major component of the index, increased 2.25 percent to close at Rs 2377.70. Tata Steel increased by 2.53% to Rs 99.30.

Stocks related to banking and finance rose. Up 2.93 percent to Rs 1422.40, HDFC Bank. Kotak Bank increased by 3.22% to Rs 1821.25. To Rs 862.80, ICICI Bank increased 2.22 percent. At Rs 530.05, State Bank of India closed 1.74 percent higher.

The price of Asian Paints fell 1.26 percent to Rs. 3342.15. Other Sensex declines included Dr Reddy’s Laboratories, ITC, Tech Mahindra, and Hindustan Unilever.

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