INDIAN BENCHMARKS: SENSEX REACHES 27,000 MARK AFTER RBI POLICY, NIFTY ENDS ABOVE 8250
The domestic equity market lapped up the accommodative stance of the Reserve Bank of India (RBI) and hit a fresh seven-month high on Tuesday.
The central bank held off on cutting key policy rates for the sixth time in the past 16 months, citing upside risk to inflation from rising commodity prices. However, that didn't deter RBI from sounding accommodative on future rate hikes.
RBI's dovishness on rate cut helped the BSE benchmark Sensex end above the 27,000-mark for the first time since October 28, 2015 higher by 232 points. The 50-share Nifty50 ended at 8,266, up 45 points, after reclaiming the 8,300 mark for the first time since October 26.
HEADLINES OF THE DAY
ICICI Bank gains fund raising plans.
Coal India plans to come up with buy back proposal.
RBI maintains status quo.
The crucial resistance for Nifty spot is now seen at 8330 and above this 8460. Support for the immediate term is now placed at 8220 and next support will be 8116.