On Thursday, the domestic stock markets climbed to a more than one-week high after inflation eased sharply in November, and the new Reserve Bank of India (RBI) governor’s move to open up a dialogue with lenders pushed up banking counters. the Nifty50 index of the National Stock Exchange (NSE) fell 53.95 points or 0.50 percent to end at 10,791.55 and the Bombay Stock Exchange (BSE) benchmark index Sensex closed at 35,929.64, up 150.57 points or 0.42 percent from the previous close. The gains in banking, FMCG, auto and IT stock boosted the rally in benchmark indices.
Twenty ninve out of the 50 stocks on the Nifty closed in the positive zone, with India Bulls Housing Finance being the top gainer on the index. Other major gainers on the 50-scrip index Nifty were Grasim, Bajaj Finserv, Wipro and Maruti.
Apparently, seventeen out of 30 Sensex stocks finished the session higher. Wipro, Infosys, Kotak Bank, Tata Motors, Larsen & Tourbo nd Maruti, were the top advancers.
Food and energy prices which are included in the retail inflation rate, fell to 2.33 percent on an annual basis in November, remaining below the Reserve Bank of India’s (RBI) medium-term target of 4 per cent for a fourth straight month.
Notably, the drop in inflation should increase the chances of new RBI Governor Shaktikanta Das keeping interest rates on hold at his first policy meeting next month. On Wednesday, Das said he will meet heads of state-run lenders to address problems facing the banking sector.
Also read: Will try to uphold credibility and autonomy of RBI: Shaktikanta Das