The Indian equity benchmarks gained for second straight session on Wednesday on the back of buying interest in rate sensitive shares after the Reserve Bank of India held its key interest rates unchanged at record lows to support the economy against the backdrop of a second surge in COVID-19 cases. The Sensex rose as much as 699 points at the day’s highest level and Nifty 50 index briefly moved above its important psychological level of 14,850. The Reserve Bank of India (RBI) stuck to its accommodative monetary policy stance amid concerns that rising infections could derail the country’s nascent economic recovery.
The Sensex ended 460 points or 0.94 per cent higher to close at 49,662 and Nifty 50 index climbed 136 points or 0.92 per cent to settle at 14,819.
“All the announcements made by the RBI, including government borrowing programmes, evolution of the yield curve and long-term bond purchases, are good for the markets,” Saurabh Jain, assistant vice president of research at SMC Global Securities told news agency Reuters.