Benchmark equity indices closed higher on Friday, snapping a weak intra-day trend, after the Reserve Bank of India left policy rates unchanged as widely expected and proposed allowing banks to lend to Real Estate Investment Trusts (REITs) under prudential safeguards to widen funding avenues for the sector.
Supported by fag-end buying, the 30-share BSE Sensex rose 266.47 points, or 0.32 per cent, to close at 83,580.40. The index had slipped to a low of 82,925.35 during the session before recovering 655.05 points by the close. The broader NSE Nifty advanced 50.90 points, or 0.20 per cent, to settle at 25,693.70 in a volatile session.
The RBI’s six-member Monetary Policy Committee (MPC) unanimously voted to keep the benchmark repo rate unchanged at 5.25 per cent, retaining a neutral stance. The decision came amid manageable inflation levels and easing growth concerns following higher government spending announced in the Union Budget and reduced tariff pressures after a trade deal with the United States.
Announcing the bi-monthly policy, RBI Governor Sanjay Malhotra said banks would be permitted to lend to REITs with suitable safeguards to deepen the financing pool for the real estate sector.
Among Sensex stocks, ITC surged 5.09 per cent to emerge as the top gainer. Kotak Mahindra Bank, Hindustan Unilever, Bharti Airtel, Bajaj Finance, Power Grid and Bajaj Finserv also closed higher.
On the downside, Tata Consultancy Services, Tech Mahindra, Adani Ports, Asian Paints, Eternal and HCL Technologies were among the laggards.
In Asian markets, South Korea’s Kospi, China’s Shanghai Composite and Hong Kong’s Hang Seng index ended lower, while Japan’s Nikkei 225 finished in positive territory. European markets were trading mostly higher during mid-session trade.
Also read: RBI keeps repo rates unchanged at 5.25 pc
US markets ended sharply lower overnight, with the Nasdaq Composite sliding 1.59 per cent, the S&P 500 declining 1.23 per cent and the Dow Jones Industrial Average falling 1.20 per cent.
“Domestic equity markets traded largely subdued through most of the session before staging a late recovery, supported by selective buying in FMCG and private banking stocks, while the IT sector continued to underperform,” said Vinod Nair, Head of Research at Geojit Investments Limited.
“The RBI’s policy announcement was largely in line with expectations, maintaining a status quo on rates while reiterating a constructive outlook on growth,” he added.
Foreign institutional investors remained net sellers, offloading equities worth ₹2,150.51 crore on Thursday, according to exchange data.
Ponmudi R, CEO of online trading and wealth-tech firm Enrich Money, said sentiment improved following regulatory clarity on bank lending to REITs, which is expected to enhance long-term funding visibility for the real estate and credit ecosystem.
Meanwhile, Brent crude, the global oil benchmark, climbed 1.20 per cent to USD 68.34 per barrel.
On Thursday, the Sensex had declined 503.76 points, or 0.60 per cent, to close at 83,313.93, while the Nifty fell 133.20 points, or 0.52 per cent, to end at 25,642.80.
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