Sensex and Nifty, the two equity benchmarks, on Friday rebounded ended modestly higher after the Reserve Bank of India (RBI) raised the key interest rate in an effort to cool surging inflation and defend the rupee. Continuous foreign fund inflows into the capital markets and softening crude oil prices also helped the bourses regain momentum, according to experts.
The BSE Sensex oscillated within a band of 405 points during the day, hitting a high of 58,649, and a low of 58,244. The BSE platform ended 89 points higher at 58,387 after facing volatility during the fag-end of trade. The broader NSE Nifty went up by 15 points to end at 17,397.
The RBI on Friday raised the key interest rate by 50 basis points to 5.40 per cent, the third straight increase since May. With the latest hike, the repo rate or the short-term lending rate at which banks borrow has crossed the pre-pandemic level of 5.15 per cent.
On the 30-share BSE platform, UltraTech Cement, ICICI Bank, Bharti Airtel, Power Grid, Infosys, Wipro, and Axis Bank were the major gainers. On the flip side, Mahindra & Mahindra, Maruti, Reliance Industries, and IndusInd Bank were among the laggards.
In the broader market, the BSE MidCap and SmallCap indices added up to 0.2 per cent. Among sectors, the Nifty Auto index fell over 1 per cent. On the upside, the Nifty IT index gained 0.6 per cent.
On the BSE, 16 scrips advanced, while 14 declined on the 30-share BSE benchmark on Friday.
In the previous session on Thursday, the BSE Sensex ended 51 points (0.09 per cent) lower at 58,298, while the Nifty dipped 6 points (0.04 per cent) to settle at 17,382.
In Asia, markets in Seoul, Shanghai, Tokyo, and Hong Kong ended in the green. European stocks were trading lower during mid-session deals. The US markets had ended on a mixed note on Thursday.
Meanwhile, international oil benchmark Brent crude went higher by 0.18 per cent to $94.29 per barrel.
Foreign institutional investors remained net buyers in the capital markets as they bought shares worth Rs 1,474.77 crore on Thursday, as per exchange data.