The country’s stock market was buzzing throughout the week on strong global cues and encouraging domestic factors. The major sensitive indices Sensex and Nifty were up more than four per cent over the previous week. The outcome of the Reserve Bank of India’s (RBI) monetary policy review meeting at the end of the week was also warmly accepted and positive response. At the same time, the domestic stock market also got support from the second quarter financial results released by domestic companies during the week. The Indian stock market closed higher for the second consecutive week. The 30-share benchmark Sensex, based on the 30 stocks of the Bombay Stock Exchange (BSE), closed at 40,509.49 with a strong gain of 1,812.44 points or 4.68 per cent over the previous week on Friday.
At the same time, the Nifty, a major sensitive index based on 50 stocks of the National Stock Exchange (NSE), closed at 11,914.20, a rise of 497.25 points or 4.36 per cent in the last session of the week against the closing of the past.
However, the BSE Midcap and Smallcap indices recorded a slight decline on a weekly basis. The midcap index closed at 14,765.55, down 47.7 points, or 0.32 per cent, from the previous week, while the smallcap index slipped 4.23 per cent to 14,966.21.
The week started on Monday with a strong business trend and the Sensex closed up 276.65 points, or 0.71 per cent, at 38,973.70 from the previous session, while the Nifty gained 86.40 points or 0.76 per cent to 11,503.35 from the previous session. Stayed.
The next day, the stock market rose further on Tuesday and the Sensex ended 600.57 points, or 1.54 per cent, at 39,574.57 due to strong buying. At the same time, the Nifty closed at 11,662.40 with a strong gain of 159.05 points i.e. 1.38 percent. In the third session of the week on Wednesday, the Sensex gained 304.38 points or 0.77 percent to close at 39,878.95 and the Nifty gained 76.45 points or 0.66 percent to 11,738.85 points from the previous session.
In the fourth session of the week on Thursday, the Sensex gained 303.72 points or 0.76 percent to close at 40,182.67 from the previous session, while the Nifty gained 95.75 points or 0.82 percent to close at 11,834.60.
The trend in the stock market continued in the last session of the week on Friday and the Sensex gained 326.82 points, or 0.81, to close at 40,509.49 from the previous session, while the Nifty gained 79.60 points or 0.67 percent to 11,914.20 from the previous session. Stayed on The domestic stock market closed up for the seventh consecutive session.
The RBI has not made any change in the prime interest rate while retaining the accommodative stance. RBI Governor Shaktikanta Das, while announcing the decision of the Monetary Policy Committee (MPC) meeting, said that the MPC has decided to keep the prime interest rate (repo rate) at four per cent and the reverse repo rate also stabilized at 3.35 per cent. is kept. Also, the Marginal Standing Facility (MSF) rate and the bank rate have been kept at 4.25 per cent.
He said that there were signs of improvement in several sectors of the economy and positive growth could be seen in the fourth quarter of the current financial year 2020-21, which encouraged the market.
Apart from this, the measures announced by the central bank to increase liquidity in the economy were more encouraging for the market. RBI said that it would buy government securities through open market operations ie OMOs. Through this medium, the central bank aims to infuse liquidity of Rs 20,000 crore into the economy.