JOIN USNifty crosses 15,000 for the first time; Sensex crosses 51,000
Benchmark 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.
At the time of filing this copy, Sensex was trading at 51,000.29, up 386.00 points from the previous close, while Nifty was trading at 14,977.15. Nifty touched a high of 15,005.95 in the early trade.
The Reserve Bank of India (RBI), which has slashed its main repo rate by 115 basis points since March 2020 to cushion the impact of the Covid-19 pandemic, is expected to keep its benchmark lending rate at 4 per cent through at least 2023, according to a Reuters poll.
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.
Benchmark indexes had also closed at record highs on Thursday and were set to finish the week over 9% higher, boosted by optimism around the federal budget, which saw a host of measures to revive the pandemic-hit economy.
The pandemic is expected to trigger India's biggest annual economic contraction in decades, and high inflation remains a cause of concern.
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.
Economists and market participants will keenly listen to the RBI's commentary on liquidity measures, as well as its forecasts on growth and inflation.
(With inputs from Reuters)