Indian benchmarks end higher on Thursday, RBI retains key interest rate
Mumbai, Apr 5 (IBNS): The Indian market closed higher on Thursday, with BSE Sensex up 577.73 points at 33,596.80, and NSE Nifty up 196.80 points at 10,325.20.
Top gainers on Thursday included Hindalco, Vedanta, SBI, Tata Motors (D), Tata Steel, Kotak Mahindra, Bajaj Finserv and ICICI bank while Cipla and Bharti Airtel were some of the key stocks that declined.
Meanwhile, the Reserve Bank of India (RBI), on Thursday, said that on the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at six per cent.
This was the first Bi-monthly Monetary Policy Statement, 2018-19 Resolution of the MPC.
Consequently, the reverse repo rate under the LAF remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent, the Report said.
According to the RBI, the decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
Dr. Chetan Ghate, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Viral V. Acharya and Dr. Urjit R. Patel voted in favour of the monetary policy decision. Dr. Michael Debabrata Patra voted for an increase in the policy rate of 25 basis points.
The next meeting of the MPC is scheduled on June 5 and 6, 2018.
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