Sensex rallies 412 points; Nifty jumps above 17,700 post RBI policy outcome

RBI keeps borrowing costs unchanged for the 11th time in a row to continue supporting economic growth despite inflation edging higher

The Sensex jumped 412.23 points on Friday, braving heavy volatility during the day, amid the Reserve Bank of India maintaining status quo on the benchmark lending rate and buying in index heavyweights Reliance Industries Limited and ITC.

The BSE Sensex climbed 412.23 points or 0.70% to settle at 59,447.18. During the day, the benchmark hit a high of 59,654.44 and a low 58,876.36.

The Nifty also gained 144.80 points or 0.82% to finish at 17,784.35.

The Reserve Bank of India (RBI) on Friday kept borrowing costs unchanged at a record low for the 11th time in a row in a bid to continue supporting economic growth despite inflation edging higher in the aftermath of Russia's war in Ukraine.

RBI's six-member Monetary Policy Committee voted to hold the benchmark repurchase or the repo rate at 4%, Governor Shaktikanta Das said.

The panel decided to stick to an accommodative stance "while focussing on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth".

"Market was cautious during the last 2-3 days ahead the RBI meet and its future policy stance. Measures being in-line with market expectations led to a relief rally. The focus has shifted to the Q4 earnings season, which will start next week, initiated by the IT and Banking sector," said Vinod Nair, Head of Research at Geojit Financial Services.