Sensex, Nifty Rally as RBI Raises GDP Growth Forecast
by mydhanush on 8 December 2023, 5 min read
The Reserve Bank of India (RBI) announced its decision to keep the repo rate unchanged at 6.5 percent for the fifth time in a row. The move was in line with market expectations. As a result, Sensex and Nifty rallied hitting all-time highs.
The RBI’s monetary policy committee also voted in five to one to stay focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth.
RBI raises GDP growth forecast for FY24 to 7%
Meanwhile, the RBI also raised its GDP growth forecast for FY24 to 7.0 percent from 6.5 percent, which ushered further optimism among investors.
The Reserve Bank of India (RBI) sees average Consumer Price Index (CPI) inflation falling to 4 percent in the second quarter of 2024-25.
As a result, Nifty climbed to yet another high on December 8 following the move by RBI as the index was back to its record-breaking ways after taking a breather in the previous session, topping the 21,000-mark for the first time. Sensex also scaled a fresh lifetime high of 69888.33 in the session.
At 11:05 AM, Sensex was trading higher by 193 points at 69714 mark while Nifty rose 42 points at 20944 level. Around 1137 stocks advanced and 1105 declined and 105 remained unchanged.Top Stock Market News on December 8
“Headline inflation continues to be volatile due to multiple supply side shocks which have become more frequent and intense. The trajectory of food inflation needs to be closely monitored. Intermittent vegetable price shocks could once again push up headline inflation in November and December,” the RBI Governor said in the press meet.
“The MPC will carefully monitor any signs of generalisation of food price pressures which can fritter away the gains in easing of core inflation,” the committee said, adding that it will “remain resolute in its commitment to aligning inflation to the target”.
Among the rate sensitive sectors, the auto index shed half a percent dragged by Ashok Leyland, Hero MotoCorp, TVS Motor Company, Mahindra & Mahindra and Maruti Suzuki.
However, the Bank Nifty index along with the realty index added 0.5 percent each. The top gainers from the banking space included HDFC Bank, IDFC First Bank, Bank of Baroda, IndusInd Bank and ICICI Bank.
The top performers from the realty space were Prestige Estates, Sobha, Lodha, Swan Energy and DLF among others.
Bank Nifty hits record high:
The Bank Nifty index gained 0.7 percent to hit a fresh lifetime high of 47,170.25 levels on December 8 as investors cheered the Reserve Bank of India’s monetary policy outcome. On a weekly basis, the index is up over 5 percent.
Most Active Stocks on NSE in Terms of Volumes:
Last Traded Price
State Bank of India
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
Image Credit: Freepik
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