07 Jun , 2024 By : Debdeep Gupta
Sensex and Nifty extended their morning gains and rose over 1 percent around noon of June 7 after the Reserve Bank of India's Monetary Policy Committee raised India's FY25 real GDP forecast to 7.2 percent from the earlier 7 percent. This optimism is driven by prospects of improving rural and urban demand conditions buoyed by positive monsoon forecasts.
The MPC also decided to keep the policy rates unchanged at 6.5 percent, aligning with market expectations.
At 11:00 am, the Sensex was up 765 points, or 1 percent, at 75,839, while the Nifty 50 was up 227 points at 23,048. Market breadth was overwhelmingly in favor of the gainer with over 2,500 shares advancing, 682 shares declining, and 95 shares remaining unchanged.
US's weekly jobless claims report is due today and the ministry allocations in India over the weekend will provide further clarity to investors.
Sectoral Trend
All 13 sectoral indices were in the green, with IT, financial services, and oil & gas stocks leading the gains in the Nifty. Infosys, Wipro, and TCS led the Nifty IT index to rise over 3 percent.
Nifty Metal, Nifty Pharma, and Nifty Realty gained 1-2 percent.
"The Indian real estate sector continues to scale new heights and the growth outlook is also projected to be strong. In this context, the status quo stance by RBI is welcome to bolster overall market confidence," said Ramani Sastri, Chairman and MD, Sterling Developers.
Fundamental View
"The RBI's decision to retain the repo rate at 6.5 percent for the eighth consecutive time ensures economic stability amid global uncertainty and domestic inflation concerns," said Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra.
"This stability supports the real estate market, making housing more affordable and boosting consumer confidence," Yagnik said. "The recent Lok Sabha elections have further bolstered economic sentiment, enhancing investor confidence through political stability and consistent economic policies," she added.
Technical View
Nifty is expected to find support at around 22,600 and 22,500 on an intermediate basis, said Sameet Chavan, Head of Research, Technical, and Derivative - Angel One.
Nifty has already surpassed the 23,000 mark which was seen as a crucial resistance level. Chavan had asked investors to take a cautious stance as Nifty approached 23,000.
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