Stock Market Today: Nifty 50 settles near 21,000 as RBI raises growth forecast; bank, IT stocks shine | Mint
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Business News/ Markets / Stock Markets/  Stock Market Today: Nifty 50 settles near 21,000 as RBI raises growth forecast; bank, IT stocks shine
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Stock Market Today: Nifty 50 settles near 21,000 as RBI raises growth forecast; bank, IT stocks shine

For the week, both the Nifty 50 and the Sensex jumped 3.5 per cent each while the BSE Midcap and Smallcap indices rose 2 per cent and 1.3 per cent respectively.

Nifty 50 breached the 21,000 mark for the first time and hit its all-time high of 21,006.10 while the Sensex also hit its fresh record high of 69,893.8 during the session on Friday, December 8. (Unsplash)Premium
Nifty 50 breached the 21,000 mark for the first time and hit its all-time high of 21,006.10 while the Sensex also hit its fresh record high of 69,893.8 during the session on Friday, December 8. (Unsplash)

Frontline indices the Sensex and the Nifty 50 ended in positive territory on Friday, December 8, on gains led by banking and IT stocks, including HDFC Bank, Infosys and ICICI Bank, after the Reserve Bank of India kept the repo rate unchanged and raised the GDP growth forecast for the financial year 2024.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 per cent and maintained the policy stance of 'withdrawal of accommodation' on Friday.

Besides, the RBI raised its real GDP growth projection for FY24 to 7 per cent from 6.5 per cent earlier. However, the central bank kept the inflation forecast unchanged as it projected Consumer Price Index (CPI)-based inflation, or retail inflation, at 5.4 per cent for FY24.

Also Read: RBI MPC Meeting: Repo rate unchanged; growth forecast raised; 7 key highlights of December policy meeting

The RBI sounded optimistic about India's economic growth even though it highlighted that the global economic environment remains fragile amid geopolitical tensions. Apart from the bullish commentary on India's growth, RBI also talked about the risk of over-tightening. This raised expectations that the central bank won't hinder growth and might lower interest rates if needed.

Also Read: RBI Monetary Policy: What are the subtle hints from the central bank? 10 experts parse MPC decisions

Following the policy announcement, the Nifty 50 breached the 21,000 mark for the first time and hit its all-time high of 21,006.10 during the session. The Sensex also hit its fresh record high of 69,893.8 during the session.

Also Read: Nifty took just 61 sessions to rise from 20,000 to 21,000! A look at its journey from 1,000

Nifty 50 closed at 20,969.40, up 68 points, or 0.33 per cent while the Sensex closed the day at 69,825.60, up 304 points, or 0.44 per cent.

Banking and IT heavyweights, such as HDFC Bank, Infosys, ICICI Bank, HCL Tech and Axis Bank, ended as the top contributors to the gains in the Sensex index.

Also Read: Nifty hits 21k as RBI keeps repo rate unchanged: Where should you invest?

The BSE Midcap and Smallcap indices also hit their fresh record highs of 35,523.69 and 41,548.63 respectively, during the session.

However, both erased their gains and ended in the red. The BSE Midcap index settled with a loss of 0.16 per cent at 35,290.91 while the Smallcap index lost 0.44 per cent to close at 41,104.37.

Over 350 stocks, including Larsen & Toubro, HCL Tech, JSW Steel, Nestle, NTPC, Power Grid Corporation, Tata Motors, UltraTech Cement and Titan, hit their fresh 52-week highs in intraday trade on BSE.

For the week, both the Nifty 50 and the Sensex jumped 3.5 per cent each while the BSE Midcap and Smallcap indices rose 2 per cent and 1.3 per cent respectively.

Top Nifty 50 Gainers Today

Some 23 stocks ended with gains while the remaining 27 ended lower in the Nifty 50 index.

Shares of HCL Tech (up 2.85 per cent), LTIMindtree (up 2.57 per cent) and JSW Steel (up 2.47 per cent) ended as the top gainers in the Nifty 50 index.

Top Nifty 50 Laggards Today

Shares of Adani Enterprises (down 1.98 per cent), Adani Ports (down 1.78 per cent) and ITC (down 1.77 per cent) ended as the top laggards in the Nifty 50 pack.

Sectoral Indices Today

With a gain of 1.31 per cent, Nifty IT ended as the top gainer among the sectoral indices, followed by Nifty Private Bank index which rose 1.01 per cent.

Nifty Bank settled with a gain of 0.90 per cent while the Financial Services index closed 0.91 per cent higher.

Among the laggards, Nifty FMCG fell 0.99 per cent. Nifty Pharma (down 0.80 per cent), Auto (down 0.55 per cent) and Oil & Gas (down 0.72 per cent) also lost significantly.

Expert's Views on Markets

"The RBI took a balanced approach by raising the economic growth forecast and also expressing concern on food inflation, which may have an elevated trajectory in the short-term. A drop in rabi sowing and dipping reservoir levels provides a perception that foodgrain prices can rise. The impact was visible on FMCG stocks, which underperformed today," said Vinod Nair, Head of Research at Geojit Financial Services.

Technical Views on Nifty 50

"The momentum indicator though is still not in sync which suggests caution at higher levels. The ideal strategy to trade is to hold on to long positions with a trailing stop loss mechanism. On the downside crucial support is placed at 20,860 – 20,800 and a dip towards this zone should be used as a buying opportunity as the overall trend is still positive. On the upside immediate hurdle is placed at 21,060 – 21,100," said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 08 Dec 2023, 03:30 PM IST
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