Stock Market News: Following the Reserve Bank of India’s predicted hold on key interest rates, Indian markets maintained steady on Friday.
The key lending rate was maintained at 6.50% by the RBI’s rate-setting committee. In order to keep inflation within its target range, the central bank also maintained its policy of “withdrawal of accommodation”.
The governor of the RBI kept the inflation forecast at 5.4% for the fiscal year 2024, but he issued a warning that El Nino circumstances, as well as global food and energy prices, will influence inflation trajectory.
The 13 main sectoral indices all increased, with rate-sensitive companies such those in the real estate, automotive, and banking sectors rising between 0.35% and 1%.
Mid-caps and small-caps, which are more domestically oriented, had gains of 0.4% and 0.7%, respectively.