The two key equity benchmarks, Sensex and Nifty, on Friday settled flat after the Reserve Bank of India (RBI) kept repo rate unchanged at 6.5 per cent. This is the seventh time in a row that the Central bank maintained the repo rate. The S&P BSE Sensex closed marginally up by 21 points to 74,248. On the other hand, the NSE Nifty50 ended at 22,514, up 1 per cent.
Stock update
On the 30-share Sensex platform, Kotak Bank, Bajaj Finserv, HDFC Bank, ITC, SBI, IndusInd Bank emerged gainers. On the down side, UltraCemco, L&T, Airtel, Bajaj Finance, Maruti, TechM were among the laggards.
In the broader markets, the BSE Midcap and Smallcap indices advanced 0.5 per cent each.
Sector update
Sectorwise, Nifty Realty index jumped 1.5 per cent, followed by Nifty Bank rising 0.9 per cent. On the other hand, Nifty IT dropped 0.5 per cent.
In the previous session on Thursday, the S&P BSE Sensex closed at 74,228, up 351 points, while the NSE Nifty50 closed at 22,515, up 80 points.
"Although the RBI policy meeting unfolded as anticipated, concerns over food inflation and warnings of a heat wave tampered sentiment. While the main domestic indices concluded with marginal movement, the Bank Nifty edged higher, propelled by robust credit growth in Q4 FY24. The global sentiment was dampened by the rise in oil prices and tensions in the Middle East. Investors remain attentive to upcoming US non-farm payroll and unemployment data, seeking clarity on the Federal Reserve's future rate path," Vinod Nair, Head of Research, Geojit Financial Services, said.
Brent crude, the global oil benchmark, edged up by 0.11 percent to reach $90.75 per barrel.
Global Markets
Across Asian markets, there was a downturn, with Japan's Nikkei 225 experiencing a decline of 1.96 percent, while Hong Kong's Hang Seng saw a marginal decrease of 0.01 percent. South Korea's Kospi index fell by 1.01 percent. European markets followed suit, trading in negative territory, with Germany's DAX and London's FTSE 100 dropping by 1.57 percent and 0.90 percent respectively. France's CAC40 also registered a decline of 1.36 percent. In the United States, markets closed predominantly lower in Thursday's overnight session.
According to exchange data, Foreign Institutional Investors (FIIs) divested equities worth Rs 1,136.47 crore on Thursday.
Rupee Rises 9 Paise
Meanwhile, the Indian rupee strengthened by 9 paise to conclude at 83.30 (provisional) against the US dollar, following the Reserve Bank of India's decision to maintain the benchmark interest rate at 6.5 percent for the seventh consecutive time on Friday. However, forex traders noted that the rupee's gains were limited by a robust US dollar against major currencies globally and the persistently high crude oil prices.
In the interbank foreign exchange market, the rupee commenced trading at 83.44 against the US dollar. It reached an intraday high of 83.26 and a low of 83.45. Ultimately, the rupee settled at 83.30 (provisional) against the dollar, marking a 9 paise increase from its previous close. On Thursday, the rupee had rebounded by 14 paise to conclude at 83.39 against the US dollar.