Hopes on status quo keep bank stocks in focus

Mumbai: Equity benchmark indices Sensex and Nifty rebounded sharply to hit record fresh highs on Thursday, propped up by buying in IT, consumer durables and financial stocks amid expectations of a robust corporate performance. Besides, investors lapped up select banking stocks expecting a status quo in the interest rate decision of the RBI’s monetary policy committee, analysts said. The six-member rate-setting panel, which began its deliberation on Wednesday, will announce the decision on Friday.

The 30-share BSE Sensex surged 350.81 points or 0.47 per cent to settle at its lifetime high of 74,227.63. During the day, the index oscillated between the high of 74,501.73 and the low of 73,485.12. The broader NSE Nifty also hit its fresh peak of 22,514.65, gaining 80 points or 0.36 per cent. As many as 31 components of the 50-share benchmark ended with gains. Both indices had ended lower in the previous two sessions. On March 7, Sensex recorded its previous peak of 74,119.39. Nifty scaled its previous high of 22,493.55.

“Market breadth displayed a positive trend within a narrow trading range, with attention focused on the RBI’s upcoming monetary policy announcement on Friday. Expectations lean towards the likely status quo in the Repo rate due to prevalent inflation worries.