Markets extend gains after RBI hikes repo rate by 50 bps; Sensex tops 200 pts, Nifty 50 above 16,500

8 Jun 2022 , 12:23 PM

Indian markets were in a steep rally led by index heavyweights post RBI Policy announcement. Overall positive global cues also lifted investors appetite. Banking, financials, media and realty stocks were in the fast lane. Both Sensex and Nifty were near the day’s high.

Today, the Reserve Bank of India (RBI) has raised the repo rate by 50 basis points, an increase for the second time in five weeks at the conclusion of the monetary policy committee’s three-day meeting on June 8. The increase in repo rate is to tackle the inflationary woes around the globe.

At around 12:25 PM, Sensex was performing at 55,317.96 up by 210.62 points or 0.38%. The benchmark has touched an intraday high of 55,423.97.

Meantime, Nifty 50 was performing at 16,479.25 higher by 62.90 points or 0.38%. The index has soared to the day’s high of 16,514.30.

In broader markets, except for India VIX, Nifty FMCG, consumer durables and oil & gas stocks, all other indices were trading higher with outperformance seen in midcaps and small-caps. India VIX nosedived by more than 3%.

Top bulls on Nifty 50 were – SBI Life (+2.2%), Bajaj Finance, Grasim, Hero MotoCorp followed by advancing nearly 2% each.

Top bears on Nifty 50 had UPL in the lead tumbling over 1% followed by Cipla, Bharti Airtel and Reliance Industries with 1% downside each.

As per the RBI Policy statement by Shaktikanta Das, the MPC also decided unanimously to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.