Sensex, Nifty Rise Over 2% As RBI Ups GDP Forecast
(RTTNews) - Indian shares posted strong gains on Friday as weak U.S. data spurred hopes for a Fed rate cut this year and the RBI left the repo rate unchanged at 6.5 percent in its second meeting of FY25 while raising its GDP growth projection to 7.2 percent for 2024-25 from 7 percent earlier.
Interest-rate cuts announced by the Bank of Canada and ECB as well as hopes for policy reforms and growth incentives by the Modi-led NDA alliance also prompted foreign portfolio investors to cover short positions and build long positions in Index futures.
The BSE Sensex surged to a record peak of 76,795.31 before ending the session up 1,618.85 points, or 2.16 percent, at 76,693.36.
The broader NSE Nifty index closed at 23,290.15, up 468.75 points, or 2.05 percent, from its previous close.
Metal, auto and tech stocks topped the gainers list, with Tata Steel, Infosys, Tech Mahindra, Wipro and Mahindra & Mahindra rallying 3-5 percent.
Global cues were mixed as investors awaited the U.S. jobs report due later in the day that could influence the timing and pace of Fed rate cuts.
Oil prices were subdued after two straight sessions of gains.
Gold prices fell from two-week high, with spot gold falling nearly 2 percent in European trade as new data showed China's central bank has paused gold purchases in May after 18 months of buying.
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