Sensex closes above 38,000

The Reserve Bank of India (RBI)’s policy announcement has given a boost to the stock market. The 50-share Sensex was up 362 points. The Nifty 30 registered 98 points gain.

 

The Sensex closed at 38,025 points on August 6. The Sensex had surged to over 38,221 points during trading. The Nifty closed at 11,200. The stock had risen to 11,256.80 points during the trading session.

 

The stock market reacted enthusiastically to the Reserve Bank governor’s announcement on August 6. The Reserve Bank of India (RBI) has decided to keep the repo rate and reverse repo rate unchanged. The current repo rate is 4%. It is not possible for the Reserve Bank to lower rates in the face of rising inflation. Reserve Bank of India Governor Shaktikant Das has said that announcements to ensure liquidity will follow. This is also a decision that will stimulate the market.

 

Tata Steel, Infosys, GAIL, Bajaj Finance and UPL were the top five gainers in the Nifty. Tata Steel was up 3.81 per cent on August 6. Metal, IT and pharma stocks were the main gainers on the day.

 

The Nifty Metal Index was up 1.62 per cent and the IT index was up 1.78 per cent. NIIT Technologies gained 6.09 per cent on August 6. The stock has risen 42% in the last one month. Infosys stock has risen 27 per cent in the past month.

 

The Nifty Pharma index was up 1.24 per cent. Shares of Aurobindo Pharma, Torrent Pharma, Divis Lab, Cipla and Sun Pharma hit 52-week highs. Aurobindo Pharma was up 6.25 per cent on the day.

 

The top five losers in the Nifty were Eicher Motors, Sree Cements, Adani Ports, Mahindra & Mahindra and Dr Reddy’s Lab.