Closing Bell: Market rebounds ahead of RBI policy review; bank and metal stocks gain
Domestic bourses snapped the two-day losing streak on December 7 led by gains all the sectoral indices.
Indian equity benchmarks staged a strong comeback after two sessions of losses a day ahead of the Reserve Bank of India's monetary policy decision, which is due on Wednesday. During today's trading session the Sensex rose as much as 1,158 points or 2% and the Nifty index moved above its important psychological level of 17,250 at the day's highest level. The top movers on the Sensex were ICICI Bank, HDFC Twins, Infosys and Reliance Industries.
At the closing bell on Tuesday, the Sensex was up 886.51 points or 1.56% at 57,633.65, and the Nifty was up 264.40 points or 1.56% at 17,176.70. On the market depth, around 2278 shares have advanced, 924 shares declined, and 114 shares were unchanged.
Top gainers on the BSE Sensex were Tata Steel, Axis Bank, ICICI Bank, Titan and Maruti. The sole loser in today's trading session was Asian Paints.
Among the sectoral indices bank, metal and realty indices added 2-3%. In the broader markets, the BSE midcap and smallcap indices rose 1% each.
One of the major reasons for a strong comeback today was that the investor sentiment got boosted on hopes that the Reserve Bank of India will likely hold off on raising its key borrowing and lending rates in their meet on December 8, as it adopts a cautious tone amid the spread of the Omicron coronavirus variant.
According to a survey conducted by Reuters on December 1-3, it expects the RBI to hold its benchmark repo rate at 4%. Several economists feel that given the uncertainties of the new covid variant on the economy, it was better to adopt a wait-and-watch approach.
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