Mumbai: Equity benchmark BSE Sensex jumped over 200 points in afternoon session on Thursday, after the Reserve Bank of India kept key policy rates unchanged, but maintained its accommodative stance to support the economy.
In the sixth bi-monthly review of the policy, the central bank also kept GDP growth rate unchanged for the current fiscal at 5 per cent and projected a pick up in growth to 6 per cent in the next financial year.
After opening on a positive note, the 30-share index turned choppy minutes ahead of the policy outcome. However, it gained lost ground, rising 209.42 points, or 0.51 per cent, to 41,352.08 in afternoon session. Similarly, the broader NSE Nifty was trading 61.20 points, or 0.51 per cent, higher at 12,150.35.
Top gainers in the Sensex pack included IndusInd Bank, SBI, Bharti Airtel, Bajaj Finance, Axis Bank, HDFC, Tata Steel, PowerGrid and HCL Tech. On the other hand, Infosys, Titan, M&M, Kotak Bank and TCS were among the laggards.
Rate-sensitive banking stocks rallied, with the BSE bankex surging 1.21 per cent, while BSE auto and realty indices turned red. According to Deepthi Mary Mathew, Economist at Geojit Financial Services, it was an expected move by the RBI, maintaining the repo rate unchanged at 5.15 per cent.
"With the inflation rate breaching the upper band, it will take time for the central bank to revive the rate cuts. By maintaining the accommodative stance, there is scope for rate cuts once the inflation rate falls back to a comfortable level, she said.
Meanwhile, the rupee was trading flat at 71.25 against the US dollar in afternoon session.