Sensex Breaches 45,000 For The First Time As RBI Revises India's Growth Forecast

The BSE Sensex rose 446.9 points higher to close at 45,079.55 points, while the Nifty50 index edged higher to close at its record levels of 13,258, up 125 points.

BSE Sensex

The benchmark equity indices on the BSE and NSE scaled new highs on Friday after the Reserve bank of India (RBI) upgraded its gross domestic product (GDP) forecast for FY21 at -7.5% compared to -9.5% projected earlier.

The BSE Sensex rose 446.9 points higher to close at 45,079.55 points, while the Nifty50 index edged higher to close at its record levels of 13,258, up 125 points.

The 30-pack Sensex touched an all-time high of 45,148.28 and a low of 44,665.91 to finally settle at 45,079.55 points, with 25 of 30 Sensex stocks end the day in the green. All BSE sectoral indices except energy end the day in the green.

HDFC, IndusInd Bank, SBI, ICICI Bank, Bajaj Finance emerged as the volume toppers.

RBI Governor Shaktikanta Das assured that the economy would witness positive GDP growth in the second half of the current fiscal. The revised projection comes in the backdrop of the RBI's decision to maintain an "accommodative" policy stance in its fifth bi-monthly monetary policy for this fiscal.

All sector indices post weekly gain with Nifty, Nifty Bank, Nifty Small, and Midcap gain for 5th week in a row while Nifty PSU Bank Nifty Metal, Auto posts best week since June 7 and Nifty Realty posts best week since Oct 25.

While keeping the key policy rates unchanged, RBI Governor Shaktikanta Das said the MPC voted unanimously to keep the rates intact. "We will use various instruments at an appropriate time to ensure enough liquidity," the RBI governor said.

Spice Jet (9.77%), NCC Ltd (7.72%), GE Shipping (8.07%), Tata Chemicals (7.82%), and Nesco (7.15%) were the key gainers on BSE, while shares of IFCI, Vakrangee, HFCL, ACC, and Ambuja Cement closed in the red.

RBI has already reduced the repo rate by 115 basis points since late March when the Covid crisis hit India.

On market movements, Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking, said, "After an extended weekend, our markets opened higher on the back of cheerful mood across the globe. However, within the first five minutes of trade, the index pared down all gains, which again did not last too long. The market saw some indecisive volatile swings in the initial trades but then settled with it's broader degree uptrend. During the remaining part, we witnessed a sustained up move to reclaim the 13100 mark, registering highest close ever."

On NSE, Adani Ports (4.86%), ICICI Bank (4.49%), Hindalco (4.34%), UltraTech Cement (4.015), and Sun Pharma (3.68%) were the lead gainers while shares of Reliance Industries, HDFC Life, Bajaj Finserve, BPCL, and HCL Technologies closed in the red.

"Today's move indicates how strong the overall trend has been because all declines in the recent past are comfortably getting bought into. For the coming session, 13150 is the immediate level to watch, and after surpassing it, we may see an extension of the move towards 13225 - 13300 levels. However, when everything looks so hunky-dory, it's advisable to be a bit pro-active as well. As a momentum trader, there is no harm in taking some money off the table, and hence, we advocate staying light from here on," said Mr. Chavan.