Sensex climbs 459 points as RBI keeps key policy rates unchanged to support growth

The Indian equities markets benchmark Sensex rose 459 points on Thursday as the Reserve Bank of India (RBI) decided to keep repo and reverse repo rates unchanged in order to support economic growth.

The 30 stock S&P BSE Sensex was trading at 58,925.58 points at 12.52 pm, which is 459.61 points or 0.79 per cent higher from its previous day's close at 58,465.97 points.

Earlier the Sensex opened in the positive at 58,810.53 points and surged to a high of 59,008.98 points.

The broader Nifty 50 of the National Stock Exchange was trading 143.80 points or 0.82 per cent higher at 17,607.60 points.

The benchmark indices rallied sharply after RBI Governor Shaktikanta Das announced that the central bank's Monetary Policy Committee (MPC) has decided to maintain a status quo on key policy rates for the 10th time in a row.

The RBI has kept the repo rate, the interest rate at which the RBI lends short-term funds to banks, unchanged at 4 per cent. The reverse repo rate, the interest rate at which the RBI borrows from banks, remains unchanged at 3.35 per cent.

The marginal standing facility (MSF) rate and the Bank Rate also remain unchanged at 4.25 per cent.

The RBI has also decided to maintain 'accommodative' stance in order to give priority to GDP growth.

The RBI's decision has sent a positive signal to the markets. There was strong buying support in banking and financial, metal and power stocks.

Kotak Bank surged 2.60 per cent to Rs 1880.85. HDFC soared 2.44 per cent to Rs 2495.90. HDFC Bank rose 2.25 per cent to Rs 1531.35. Tata Steel surged 1.86 per cent to Rs 1245.10.

Power Grid Corporation 1.53 per cent higher at Rs 212.50; State Bank of India 1.39 per cent higher at Rs 542.60; Bajaj Finserv 1.27 per cent higher at Rs 16470.70; NTPC 1.22 per cent higher at Rs 136.70 and Axis Bank 1.17 per cent higher at Rs 813.15 were among the major Sensex gainers.

Only six of the 30 scrips that are part of the Sensex were trading the red. Maruti Suzuki was down 0.68 per cent at Rs 8890.30. Dr Reddy's Laboratories, Hindustan Unilever, Asian Paints and Nestle India were among the Sensex losers.

( With inputs from ANI )

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