Indian markets open higher on RBI refusing to cut interest rates

Key highlights:

• Key Indian equity market indices on Thursday opened higher after the RBI maintained the interest rates
• Sensex of the BSE, which had closed at 31,671.71 points on Wednesday, opened higher at 31,725.85 points
• NSE, the broader 51-scrip Nifty, which had closed at 9,914.90 points, was quoting at 9,923.55 points, up by 8.65 points or 0.09%

The key Indian equity market indices on Thursday opened higher after the Reserve Bank of India (RBI) maintained its hawkish stand refusing to cut rates in view of the rising inflationary pressure and concerns over fiscal slippage.

The Sensitive Index (Sensex) of the BSE, which had closed at 31,671.71 points on Wednesday, opened higher at 31,725.85 points.

Minutes into trading, it was quoting at 31,686.19 points, up by 14.48 points, or 0.05%.

At the National Stock Exchange (NSE), the broader 51-scrip Nifty, which had closed at 9,914.90 points, was quoting at 9,923.55 points, up by 8.65 points or 0.09%.

Continuing with gains for the fourth consecutive session, key Indian equity indices closed on a higher note on Wednesday as positive global cues, coupled with healthy buying in healthcare, oil and gas and FMCG stocks, buoyed investors` sentiments.

According to market observers, the equity markets -- which had already discounted any further reduction in key lending rates -- made substantial gains as the RBI reduced the SLR (statutory lending rates), which created healthy demand for banking stocks.

The Sensex was up by 174.33 points or 0.55 percent at the Wednesday`s closing. In the day`s trade, the barometer 30-scrip sensitive index had touched a high of 31,752.16 points and a low of 31,457.78 points. The Nifty too was up by 55.40 points or 0.56 %.

On Thursday, Asian indices were mostly showing a positive trend. For instance, Japan`s Nikkei 225 was trading in green, up by 0.03%.

Nasdaq closed in green, up by 0.04% while FTSE 100 was down 0.01% at the closing on Wednesday.

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