The Nifty 50 surged to a historic high, breaching the 21,000 mark for the first time following the Reserve Bank of India’s announcement to maintain the repo rate at 6.5%. Governor Shaktikanta Das cited robust GDP growth and stable inflation, reinforcing investor confidence.
Amid global uncertainty, Governor Das emphasized India’s resilient economy, surpassing Q2FY24 GDP growth forecasts at 7.6%. He highlighted strengthened fundamentals, including healthier bank balance sheets, improved fiscal consolidation, and robust forex reserves, fostering an optimistic environment for sustained growth.
The RBI’s modestly less hawkish stance than anticipated, aligning with economic expectations, sparked positivity on Dalal Street, propelling the S&P BSE Sensex to an all-time high of 69,888.33. Despite intermittent volatility, market sentiment remains buoyant post-announcement.
Sujan Hajra of Anand Rathi Shares and Stock Brokers maintains a projected rate reduction in FY25, citing favorable market sentiment from the upgraded GDP forecast.
