The equity markets climbed to a seven-month high gaining close to one per on Tuesday as global stocks rallied higher after the US Federal Reserve chair Janet Yellen hinted that an interest rate hike d
The equity markets climbed to a seven-month high gaining close to one per on Tuesday as global stocks rallied higher after the US Federal Reserve chair Janet Yellen hinted that an interest rate hike during its next week meeting is unlikely in the backdrop of weak US jobs data.
On the domestic side, the Reserve Bank of India (RBI) kept its key policy rate unchanged in line with market expectation. However, the market sentiment got a major boost after the RBI governor Raghuram Rajan said that the monetary policy would remain accommodative, which triggered a strong rally in interest rate sensitive bank stocks.
The Sensex soared 232.22 points or 0.87 per cent to end the day at 27,009.67 while the broader 50-share Nifty closed the day at 8,26645, gaining 65.40 points or 0.80 per cent. The shares of India’s largest state lender SBI vaulted 5.40 per cent while the shares of India’s largest private sector lender ICICI Bank surged 4.31 per cent.
“The RBI’s continued commitment to an accommodative policy stance and the assurance of moving towards a neutral liquidity framework is positive. This should continue to support transmission of RBI’s policy stance,” said Chanda Kochhar, MD and CEO of ICICI Bank.
“Central bankers ruled the markets on Tuesday as comments from RBI governor and the US Federal Reserve chairwoman dominated investor sentiments,” said Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund.
