As Prime Minister Narendra Modi was elected as leader of the NDA Parliamentary party amid the RBI’s monetary policy announcements, the Indian indices on Friday recovered from losses it suffered before the election results, giving investors Rs 28 lakh crore back in just three trading sessions, from over Rs 30 lakh crore loss they had suffered.
The Sensex and Nifty surged more than 2 per cent over positive domestic cues to reach fresh peaks, as investors gained around Rs 7 lakh crore in a single trading session on Friday, with the BSE market cap touching Rs 423 lakh crore.
While the Sensex closed at 76,693 points, or 1,618 points up, the Nifty reached 23,290 (468 points up) at the day’s closing.
Earlier in the day, the Central Bank’s Monetary Policy Committee (MPC) decided to keep the policy rates unchanged at 6.5 per cent for the eighth consecutive time.
The RBI also raised India’s real GDP forecast to 7.2 per cent for FY25 from the earlier 7 per cent.
Bank Nifty went up 511 points, or 1.04 per cent, to close at 49,803.
According to market experts, the anticipation of stability within the coalition government at the Centre, coupled with the RBI’s upward revision of its growth forecast for FY25 to 7.2 per cent, fuelled a broad-based rally in the domestic market.
“The Indian market surpassed its previous record set on the exit-poll day and reached a fresh peak. Though the last mile towards the inflation target remains sticky, investors are expecting the MPC to be one step closer to the easing cycle,” they added.
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