Markets bounce back after RBI's policy decision
April 06, 2023  11:37
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Equity benchmark indices recovered early lost ground and were trading in the positive territory in Thursday mid morning trade after RBI kept the repo rate unchanged at 6.5 per cent even as inflation is trending above its tolerance level. 

Bouncing back from early fall, the 30-share BSE Sensex climbed 176.91 points to 59,866.22 after the RBI policy announcement. The broader NSE Nifty also gained 44.2 points to 17,601.25 after falling in initial trade. 

In early trade, the Sensex had fallen 165.16 points to 59,524.15 while the NSE Nifty had declined 45.5 points to 17,511.55. The rate increase has been paused after six consecutive rate hikes aggregating to 250 basis points since May 2022. 

 Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) will not hesitate to take action in the future. While keeping the interest rate intact, Das said core inflation remains sticky. Core inflation generally refers to inflation in manufactured goods. 

 "RBI's pause is like Sachin stroke on a tricky pitch but with eyes set in and having the luxury of hitting the ball where ever he wanted. RBI had the option of a rate hike or a pause. The pause was not entirely unexpected. "RBI will watch developments and data before taking the next call. The market expects RBI to fetch maximum run and win the match on inflation and growth, no matter which direction they hit the ball," said Nilesh Shah, MD, Kotak Mahindra Asset management Company Ltd. 

 Among the Sensex firms, State Bank of India, Bajaj Finance, IndusInd Bank, Larsen & Toubro, Bajaj Finserv and Reliance Industries were the major winners. HCL Technologies, Axis Bank, Tech Mahindra, Maruti, Titan, ICICI Bank, Hindustan Unilever and Nestle were among the laggards.
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