Indian Equity Indices Surge Amid Positive Market Sentiment
Barometers trade with robust gains, financial services shares advance
Business Standard
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Indian equity indices experienced significant gains, with the S&P BSE Sensex rising 3.88% to 77,516.07 and the Nifty 50 increasing 3.69% to 23,977.05. This surge was fueled by a decline in oil prices following a ceasefire between the US and Iran, alongside the Reserve Bank of India's decision to maintain the benchmark interest rate at 5.25%.
- 01S&P BSE Sensex surged 2899.15 points or 3.88%.
- 02Nifty 50 index increased by 853.43 points or 3.69%.
- 03Reserve Bank of India maintained the repo rate at 5.25%.
- 04Financial services shares rose for the fifth consecutive session.
- 05US-Iran ceasefire agreement contributed to positive market sentiment.
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In mid-afternoon trading, Indian equity indices showed robust gains, with the S&P BSE Sensex climbing 3.88% to reach 77,516.07 and the Nifty 50 index rising 3.69% to 23,977.05. This upward trend was supported by a notable decline in oil prices following a temporary ceasefire agreement between the United States and Iran, which eased market concerns. Additionally, the Indian rupee strengthened against the dollar, further boosting investor confidence. The Reserve Bank of India's Monetary Policy Committee, led by Governor Sanjay Malhotra, decided to keep the benchmark interest rate unchanged at 5.25%, maintaining a neutral policy stance. Financial services stocks led the charge, with the Nifty Financial Services index surging 5.41%, marking a 10.62% rise over five trading sessions. Noteworthy performers included Shriram Finance and Cholamandalam Investment & Finance Company, which saw increases of 10.52% and 9.46%, respectively. The broader market also reflected strength, with the BSE 150 MidCap Index and BSE 250 SmallCap Index each rising 3.89%. Analysts remain cautious about potential risks to growth due to elevated energy prices and geopolitical tensions in the Strait of Hormuz.
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The rise in equity indices and a stable interest rate can lead to increased investor confidence and potentially lower borrowing costs for consumers and businesses. This could stimulate economic growth and consumer spending.
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