Stock Market Live Updates: Nifty Near 24,800, Sensex Rises After RBI Monetary Policy
The Indian stock markets have been eagerly awaiting the Reserve Bank of India’s (RBI) Monetary Policy Committee decision, which was announced today. The Central Bank has decided to retain the benchmark lending rate at 5.5%, as expected by many economists. This decision has led to a positive response in the markets, with the Nifty 50 trading above 24,800 and the Sensex rising by over 500 points.
Nifty 50 and Sensex Movements
As of 2:20 p.m., the Nifty 50 was trading at 24,800, with Tata Motors, Shriram Finance, Kotak Mahindra Bank, and Trent leading the gains. On the other hand, counters like Bajaj Finance, Tata Steel, Maruti Suzuki, and Bajaj Auto have slipped into the red.
The shares of Tata Motors have surged nearly 5% to Rs 712.9 apiece on the NSE during trade so far, after the company set the record date for the demerger share issue on October 14. The company is set to allot one share of Tata Motors Ltd., commercial vehicles for every share held in the company, according to an exchange filing on Wednesday.
RBI’s Monetary Policy Decision
The RBI’s decision to retain the benchmark lending rate at 5.5% is seen as a positive move by the markets. The Central Bank is also expected to announce further rate cuts down the line, which could provide a boost to the economy. Out of the 37 economists polled by Bloomberg, 11 expect a status quo, while the rest expect a 25 basis point cut.
The RBI is also looking to establish transparent reference rates for currencies of India’s major trading partners to facilitate rupee-based transactions. This move is expected to reduce the need for crossing currencies to get rates, and will help to set a benchmark reference rate.
Other Market News
After Shriram Finance Ltd., MUFG has also denied any possibility of a stake sale in the company, in response to media claims suggesting a 20% equity purchase from MUFG. The company has clarified that it is not aware of any such potential majority stake sale of equity shares of the company by any shareholder(s).
The Nifty 50 was trading 0.63% higher over the 24,700 levels at noon, with the gains of the index led by Tata Motors, Shriram, and Finance marking over 4% gains. However, counters like Bajaj Finance, Tata Steel, Asian Paints, and Maruti Suzuki are trading in the red.
Investor Sentiment
The Indian stock markets have been volatile in recent times, with investor sentiment being affected by various factors such as the RBI’s monetary policy decisions, corporate earnings, and global market trends. However, with the RBI’s decision to retain the benchmark lending rate at 5.5%, investor sentiment is expected to improve, and the markets are likely to see a positive trend in the coming days.
Investors are advised to keep a close watch on the markets and to make informed decisions based on their individual financial goals and risk tolerance. It is also important to diversify one’s portfolio and to invest for the long term, rather than trying to time the markets.
Conclusion
In conclusion, the Indian stock markets have responded positively to the RBI’s Monetary Policy Committee decision, with the Nifty 50 trading above 24,800 and the Sensex rising by over 500 points. The decision to retain the benchmark lending rate at 5.5% is seen as a positive move by the markets, and is expected to provide a boost to the economy. Investors are advised to keep a close watch on the markets and to make informed decisions based on their individual financial goals and risk tolerance.
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