Sensex, Nifty hit all-time closing high levels as RBI raises GDP growth projection

• Benchmark equity indices Sensex and Nifty climbed over 2% to settle at record closing high levels on Friday.
• The Reserve Bank of India (RBI) revised upwards the GDP growth projection to 7.2% for 2024-25 from 7% earlier.
• IT and interest rate-sensitive bank, realty, and auto stocks ended with sharp gains.

Benchmark equity indices Sensex and Nifty climbed over 2 per cent to settle at record closing high levels on Friday after the Reserve Bank of India (RBI) revised upwards the GDP growth projection to 7.2 per cent for 2024-25 from 7 per cent earlier. The 30-share BSE Sensex jumped 1,720.8 points, or 2.29 per cent, to hit a new record peak of 76,795.31 in day trade. The benchmark ended at 76,693.36, up 1,618.85 points, or 2.16 per cent.

The NSE Nifty climbed 498.8 points, or 2.18 per cent, to 23,320.20 during the day and is just 18.5 points from hitting its record high level. It settled with a jump of 468.75 points, or 2.05 per cent, at 23,290.15.

IT and interest rate-sensitive bank, realty, and auto stocks ended with sharp gains.

The RBI left its key interest rates unchanged on Friday as expected, keeping the focus on inflation amid robust economic growth that is likely to provide the new Modi government headroom for manoeuvring reforms.

The Monetary Policy Committee, consisting of three RBI and an equal number of external members, kept the repo rate unchanged at 6.50 per cent for an eighth straight policy meeting and stuck to its relatively hawkish stance of "withdrawal of accommodation", Governor Shaktikanta Das said in his statement.

"The Nifty gained 759 points over the week to close at 23,290. A classic rebound at the markets this week from the depths of pessimism. For a lot of market participants the trading action must have looked quite illogical in comparison to the news flow that was on offer. The Nifty witnessed a rebound of 2000 points and closed at the high point of the week. It was a very volatile week and neither the bulls nor the bears wanted to give up. The broader markets underperformed as compared to the mainline indices," said Tejas Shah, Technical Research, JM Financial & BlinkX.

With the Indian economy, Asia's third-largest, growing faster than expected in the previous year, the RBI raised its GDP growth projection for the current fiscal through March 2025 to 7.2 per cent from 7 per cent while maintaining its inflation forecast at 4.5 per cent.

"The anticipation of stability within the coalition government at the centre, coupled with the RBI's upward revision of its growth forecast for FY25 to 7.2 per cent, fuelled a broad-based rally in the domestic market. The Indian market surpassed its previous record high set on exit-poll day and reached a fresh peak," said Vinod Nair, Head of Research, Geojit Financial Services.

All the 30 Sensex companies ended in the positive territory, with Mahindra & Mahindra, Wipro, Tech Mahindra, Bharti Airtel, Infosys and Tata Steel emerging as the biggest gainers.

In Asian markets, Seoul, and Shanghai settled with gains while Tokyo and Hong Kong ended lower.

European markets were trading lower. US markets ended on a mixed note on Thursday.

Global oil benchmark Brent crude climbed 0.04 per cent to USD 79.95 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,867.72 crore on Thursday, according to exchange data.

Regaining the 75,000 level, the BSE benchmark jumped 692.27 points, or 0.93 per cent, to settle at 75,074.51 on Thursday. The Nifty climbed 201.05 points, or 0.89 per cent, to 22,821.40.