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Indian Equity Markets Maintain Upward Momentum Amid RBI Monetary Policy Update

Strategic Insights

— 2 min read

The Indian equity markets continued to show an upward trend in the late afternoon session following the Reserve Bank of India's (RBI) decision to keep its key lending rates unchanged for the tenth consecutive time. Despite the RBI pegging the economic growth rate for 2022-23 at 7.8 per cent, down from 9.2 per cent expected in 2021-22, due to uncertainties caused by the pandemic and elevated global commodity prices, the market saw gains across various sectors. The top gainers on the Sensex were Kotak Mahindra Bank, HDFC Bank, Tata Steel, and HDFC, while Asian markets traded mostly in green, with the Taiwan Weighted strengthening 186.29 points or 1.03% to 18,338.05.

Key Takeaways:

  • The Reserve Bank of India (RBI) maintained its key lending rates unchanged for the tenth consecutive time, keeping the policy repo rate under the liquidity adjustment facility (LAF) at 4.0 per cent.
  • The RBI projected the real gross domestic product (GDP) growth at 7.8 per cent for 2022-23, with Q1:2022-23 at 17.2 per cent, Q2 at 7.0 per cent, Q3 at 4.3 per cent, and Q4:2022-23 at 4.5 per cent.
  • The top gainers on the Sensex were Kotak Mahindra Bank, HDFC Bank, Tata Steel, HDFC, and Infosys, while the top losers were Maruti Suzuki, Ultratech Cement, and Nestle.
  • The BSE Sensex traded at 59,011.86, up by 545.89 points or 0.93% after trading in a range of 58,333.28 and 59,054.05, with 27 stocks advancing against 3 stocks declining on the index.
  • The CNX Nifty traded at 17,625.10, up by 161.30 points or 0.92% after trading in a range of 17,427.15 and 17,636.70, with 41 stocks advancing against 9 stocks declining on the index.

Statistics:

  • The BSE Sensex increased by 545.89 points or 0.93% to trade at 59,011.86.
  • The CNX Nifty increased by 161.30 points or 0.92% to trade at 17,625.10.
  • The top gainers on the Sensex were Kotak Mahindra Bank, HDFC Bank, Tata Steel, HDFC, and Infosys.
  • The top losers on the Sensex were Maruti Suzuki, Ultratech Cement, and Nestle.
  • The RBI projected the real GDP growth at 7.8 per cent for 2022-23.
  • The RBI projected CPI inflation for 2022-23 at 4.5 per cent, with Q1:2022-23 at 4.9 per cent, Q2 at 5.0 per cent, Q3 at 4.0 per cent, and Q4:2022-23 at 4.2 per cent.

Sources:

  • Reserve Bank of India (RBI)
  • BSE Sensex
  • CNX Nifty
  • Accord Fintech Pvt. Ltd.
  • Contify.com

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