Closing Bell: Nifty ends near 17,800, Sensex adds over 400 points on back RBI monetary policy outcome; FMCG top gainer

The domestic equity market gained more than half per cent after six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the key lending rate unchanged and stance accommodative.  

"RBI monetary policy is as expected, with the accommodative stance remaining in place. However, the reverse repo rate has been raised, sucking liquidity from the market, but the outlook remains positive because the accommodative stance remains in place," said Ravi Singhal, Vice Chairman, GCL securities Limited.  

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Benchmarks Nifty50 and the S&P BSE Sensex edged higher in the Friday's closing even as the RBI MPC slashed GDP growth rate from 7.8% to 7.2% for Financial Year 2022-23. 

The broader Nifty50 gained 0.8%  to close near 17,800-mark, while the Sensex added over 400 points as the 30-share index ended above 59,400.  

"Market was cautious during the last 2-3 days ahead the RBI meet and its future policy stance. Measures being in-line with market expectations led to a relief rally. The focus has shifted to the Q4 earnings season, which will start next week, initiated by the IT & Banking sector," said  Vinod Nair, Head of Research at Geojit Financial Services. 

Outlook for the banking sector is robust due to rapid bounce in credit growth & improvement in balance sheet, while preview for IT is mixed as Q4 is seasonally weak, added the market expert.

Meanwhile, Grasim, JSW Steel, SBI Life, ITC, Adani Ports, Dr Reddy's, RIL, Titan, Tata Steel, M&M and IndusInd Bank were top gainers in a highly volatile market.  

Cipla, NTPC, Tech Mahindra, Maruti, Sun Pharma, HDFC and Bharti Airtel declined despite the benchmarks ended firm.  

Following the headline indices, Nifty mid cap and small cap gained around 1%, 0.5% respectively as India Volatility Index (IVX) slipped below 18-mark.  

Except IT, which ended marginally lower, all sectors turned green with maximum buying interest seen in FMCG, Metal, Consumer Durable and Oil & Gas stocks on Friday.  

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)