A three-day losing streak broken and how! Equity benchmarks had a good day of trade, with the Sensex closing 275 points higher, while the Nifty closed near 10,700-mark.
The market witnessed a last hour surge after Reserve Bank of India’s Monetary Policy Committee decided to hike repo rate to 6.25 percent. While the Street began the day on a flat note, a surge in the first couple of hours hinted that investors were possibly pricing in a rate hike from the policy.
The Reserve Bank of India’s Monetary Policy Committee (MPC) has, for the first time in four years, hiked key repo rate by 25 basis points (bps) to 6.25 percent.
The MPC decided to increase it by a quarter percentage point on account of high inflation and firming crude oil prices.
The central bank also hiked the reverse repo rate to 6 percent.
The announcement by the central bank hence pushed up the market, led by banking, automobile names as well as midcaps. The Nifty midcap index was up over 1 percent. All other sectoral indices ended in the green.
The Sensex is up 275.67 points or 0.79% at 35178.88, while the Nifty is up 91.50 points or 0.86% at 10684.70. The market breadth is positive as 1664 shares advanced, against a decline of 957 shares, while 136 shares were unchanged.
Airtel, Tata Motors, and Titan were the top gainers, while HDFC Bank, Asian Paints, Tech Mahindra and HPCL lost the most.
Stocks in the news
Based on RBI’s decision to hike interest rates, banking, automobile and real estate stocks rose higher. Bank Nifty and PSU bank index rose 0.4 and 2.5 percent, respectively. Nifty realty and auto were also higher by over a percent.
Shares of CG Power gained almost 3 percent as investors cheered an order win from the Indian Railways worth Rs 319 crore.
Cadila Healthcare’s shares gained over one third of a percent after the USFDA inspected the manufacturing facility of Cadila’s wholly-owned subsidiary, Alidac Pharmaceuticals, located at SEZ, Ahmedabad.
Meanwhile, Mcleod Russel was up 2 percent after it said that it plans to sell 8 tea estates. The firm company has decided to dispose of certain tea estates in Assam.
Hindustan Construction Company gave up most of its gains after surging 7 percent after it won a contract worth Rs 737 crore.
Sugar stocks were in focus after the government announced a bailout package of Rs 8,000 crore for the sugar sector. The segment has closed on a mixed note as experts remain divided on the minimum selling price (MSP) of Rs 29.
Markets in Europe opened slightly higher on Wednesday as investors were worried about fiscal concerns in Italy. Stoxx 600 was marginally above the flat terrain.
Asian stocks closed higher amid steady global cues on trade concerns. Nikkei 225 was up 0.38 percent to close at 22,625.73.
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