Markets React Positively To Unchanged Repo Rate, Tech Stocks Jump; RBI Retains Status-Quo At 6.50%

Post the three-day Monetary Policy meeting, the RBI announced the retention of the repo rate for the next two months. The RBI has retained the rate at 6.50 per cent, and the central bank has done this for the eighth straight time.

Markets Positively To Repo Rate

The Markets have reacted positively to the development so far; the indices that opened for the day's trade on June 7. Major Indices of the Indian market are trading in green, having increased by 1.00 per cent. Roughly an hour after the announcement, the marquee indices.

The BSE-Sensex jumped by 1.15 per cent or 860.64 points, to take the overall number to 75,935.15. The NSE-Nifty was also trading in the green, the index jumped by 1.07 per cent or 244.65 points to reach 23,066.05. Meanwhile, Nifty Bank has improved by 0.72 per cent or 353.45 points to reach 49,645.35.

In this, many of the stocks that were trading in green and that made major advancements were tech companies. Amongst the major companies, Bangalore-based Wipro's gains stood at 5.42 per cent or 25.05 to take the value of each share to Rs 486.05.

Tech Stocks Boom

The company was followed by Infosys, which gained 3.63 per cent or 53.45 points, taking price to Rs 1,525.70. Tech Mahindra jumped to Rs 1,354.30, after gaining 2.80 per cent or 36.85. TCS also did well, as it gained 1.52 per cent or 58.40 points, taking it to Rs 3,888.80 per share. In addition, HCL also hopped by 1.47 per cent or 20.50 points, taking the cumulative numbers to Rs 1,418.00.  

It is interesting to note that the Reserve Bank governor, in his address, said, that there is a need to be vigilant in times of global uncertainty. In addition, the RBI also upgraded its projections for the Indian economy. RBI increased the GDP projection from 7 per cent to 7.2 per cent for FY25. In addition, the central bank also maintained its consumer price index projections at 4.5 per cent.

The Indian Rupee stood at 83.41 against the US Dollar.