The benchmark indices extended the gain consecutively for the second day in a row. The Nifty settled at 17469.75 levels with 1.7 percent gains while the Banknifty increased by 1.75 percent to close at 37285.80 levels.
All the sectoral indices have traded positively wherein Nifty PSU BANK and MEDIA have contributed more than 2 percent returns in a day.
Sensex was up 1,016.03 points or 1.76 percent at 58,649.68. The broader Nifty index was up 293.10 points or 1.71 percent at 17,469.80. About 2270 shares have advanced, 941 shares declined, and 121 shares are unchanged.
Among the major gainers on the Nifty were Bajaj Finance, Hindalco Industries, Maruti Suzuki, SBI and Bajaj Finserv. Losers included HDFC Life,Kotak Mahindra Bank, Power Grid Corp, Divis Labs and IOC.
Mohit Nigam, Head - PMS, Hem Securities, said, "Among sectors, all the key indices were trading with a positive momentum. The European markets are trading flat today. RBI kept accommodative stance with interest rate unchanged at 4 percent and reverse repo rate at 3.35 percent and will maintain this stance as long as necessary to revive and sustain growth which gives a clear signal that RBI is giving a strong and durable support to the economy without downsizing any support which will be beneficial for the equity markets as well. Hence, the markets have given a stellar run up today giving a thumbs up to RBI's comments today".
"Despite record equity selling by FIIs, RBI has done well to defend the currency and made sure that imported inflation is under check. Immediate support and resistance for Nifty 50 is 17,200 and 17,700 and for Bank Nifty is 36,900 and 37,800."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, "RBI's decision to keep the policy rate unchanged and maintaining an accommodative stance helped benchmark indices propel sharply for the second straight session. Post-reversal, the market has maintained an uptrend continuation formation, and on daily charts it has formed a bullish candle. The texture of the market is positive and is likely to continue in the near term. But due to an overstretched rally, some profit booking at higher levels cannot be ruled out. For Nifty, 17,400 -17,340 would act as a key intraday support while 17,575-17,620 could act as a strong resistance zone for the day traders."
Nifty rose for the second consecutive session on December 8 as fears from Omicron variant of COVID-19 subsided. Nifty opened with a gap up and rose gradually through the day with minimal corrections. RBI's rate-setting panel voted to keep policy rates unchanged and signalled commitment to support 'durable, strong, inclusive' recovery. This also helped Nifty make further gains. At close, Nifty was up 1.71% or 293 points to 17469.7. Nifty gained the most in points terms in more than 6 months.
Deepak Jasani, Head-Retail, HDFC Securities, "On a day when the volumes on the NSE were higher than the recent average, Realty, Metals, Auto, Telecom, IT and Bank indices rose the most. BSE Smallcap and Midcap indices underperformed the Nifty rising 1.4-1.5 percent. ".
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities said, "Nifty after making an all-time high of 18604 in mid-October went through a corrective phase over last 2 months. The putative swing low made during this period was at around 16800 levels. However, at sub-17000 levels, the aggression from Bears was found to be missing leading to an eventual recovery which we are witnessing presently.
This could be partly explained by the oversold readings at lower levels coupled with the support coming in at the 16900 mark from the 38.2% retracement (of the rally from the April’21 lows of 14151 up to the all-time highs of 18604.”
