The key lending rate of the RBI, or the repo rate, was left undisturbed at 4 percent while the reverse repo rate, or the key borrowing rate, was retained at 4 percent.
Sensex is up 191.85 points or 0.38% at 50806.14, and the Nifty added 29.70 points or 0.20% at 14925.40.
The Reserve Bank of India monetary policy committee left interest rates unchanged as expected on Friday after data showed the economy is contracting less than expected amid softening prices.
RBI’s first monetary policy committee, which met for the first after the Union Budget 2021, decided to retain an accommodative policy stance at least for the current financial year and into the next to revive growth as inflation has eased below “tolerance level of 6 percent”.
The key lending rate of the RBI, or the repo rate, was left undisturbed at 4 percent while the reverse repo rate, or the key borrowing rate, was retained at 4 percent.
The PSU Bank index jumped over 5 percent and is the outperforming sector. The surge was led by State Bank of India which zoomed 12 percent.
Brokerage firm ICICIdirect has revised its rating from hold to buy with a revised target price of Rs 410 (earlier Rs 290), valuing the stock at ~1x FY23E ABV for standalone bank and subsidiaries valued at Rs 132 post holding company discount. Motilal Oswal has maintained buy with a target price of Rs 475/share.
CLSA has also maintained a ‘buy’ call on the stock and raised its target to Rs 560 per share from Rs 385 earlier. It expects a big rerating for the stock on the back of much better than expected Q3 earnings, according to a CNBC-TV18 report.
The other gainers included Bank of Baroda, Indian Bank, PNB, Central Bank of India and Canara Bank.
On the other hand, the auto index is trading in the red with individual names trading mixed. Share price of Hero Moto along with Mahindra & Mahindra, Ashok Leyland, Bajaj Auto, Maruti Suzuki and Tata Motors traded in the red.
Nifty Realty gained a percent with Godrej Properties adding 5 percent followed by Brigade Enterprises and Oberoi Realty.
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