Equity benchmarks spike to new highs ahead of RBI policy decision

MUMBAI: Equity benchmarks Sensex and Nifty advanced their record-setting spree in early trade on Friday, ahead of the RBI monetary policy outcome.

The 30-share BSE Sensex, briefly touched the 51,000-level, and was trading at 50,830.76, gaining 216.47 points or 0.43 per cent in opening trade.

Similarly, the 50-share NSE Nifty was quoted at 14,968.95, moving higher by 73.30 points or 0.49 per cent. SBI, Kotak Bank, IndusInd Bank, HDFC, ONGC and Axis Bank were top gainers in the Sensex pack.

Of the Sensex constituents, 22 shares were trading in the green. On Thursday, the Sensex had ended 358.54 points or 0.71 per cent higher at its new closing record of 50,614.29; and the Nifty had settled with 105.70 points or 0.71 per cent gains at its closing peak of 14,895.65.

Both indices had touched their all-time highs as well during the session. Meanwhile, the Reserve Bank is scheduled to announce its bi-monthly monetary policy decision in a short while from now.

"The market will be keenly watching the monetary policy due today, particularly the nuances of the policy and indications coming from the central bank. The policy rates are likely to remain unchanged but there can be indications on liquidity management, going forward," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

The RBI has a crucial role to play in growth recovery by pursuing an accommodative stance for an extended period of time, he said adding that low-interest rates have turned out to be a strong tailwind for sectors like housing and automobiles.

Foreign institutional investors bought shares worth Rs 2,520.92 crore on a net basis on Thursday, according to exchange data.

Asian shares too moved higher during afternoon trade as governments around the globe accelerated vaccine rollout programmes to fight the COVID-19 pandemic.

Meanwhile, the global oil benchmark Brent crude was trading 0.39 per cent higher at USD 59.22 per barrel.