RBI Governor Shaktikanta Das announced its fourth bi-monthly monetary policy today in which he said that the central bank has decided to keep the repo rate unchanged at 6.50% and adopted a stance of ‘withdrawal of accommodation. The RBI governor said, “After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI’s Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5%.”
When the RBI keeps the repo rate unchanged, it means that the central bank is maintaining the current level of interest rates at which it lends money to commercial banks.
“The RBI’s decision to maintain the status quo in its policy has been received positively by the market, despite growing concerns about rising inflation on a global scale. Nevertheless, the impact of this decision is expected to be limited, as the market’s attention is anticipated to shift towards global market dynamics, notably the dollar index and US bond yields,” said Santosh Meena, Head of Research, Swastika Investmart.
Here’s how the Key indices on NSE responded
Bank Nifty
Following the RBI’s decision to maintain the status quo, The Bank Nifty index gained 0.64% to 44, 500.70 during the intra-day trade on Friday. IndusInd bank, Bandhan Bank and Bank of Baroda were among the top stocks to lead the gains.
PSU Bank
The PSU Bank stocks surged over 1.21% to 5,267.50 during the intra-day trade on Friday. Canara Bank, Bank of Baroda, Union Bank of India and SBI were among the top stocks to lead the gains.
Auto
Auto stocks added 0.77% to 16,039.80 during the intra-day trade on Friday. The top gainers included Bharat Forge, Bosch and Mahindra & Mahindra.
Realty
Realty stocks surged 1.25% to 577.10 during the intra-day trade on Friday. The top gainers included Brigade Enterprises, Godrej Properties, Microtech Developers, Sobha and Prestige Estates.