Indian shares jump for fourth day as RBI holds rates

Indian shares gained for a fourth session on Wednesday after the central bank kept policy rates unchanged, as expected.

RBI Logo.
RBI Logo. Reuters

Indian shares gained for a fourth session on Wednesday after the central bank kept policy rates unchanged, as expected.

The six-member monetary policy committee kept the repurchase rate—the rate at which the central bank infuses liquidity in the banking system— unchanged at 6 percent.

The S&P BSE Sensex rose 0.55 percent at 31,671 while the broader NSE Nifty gained 0.56 percent to 9,914.

Among the top Sensex gainers: Sun Pharma rose 3 percent, ITC added 2.5 percent, Dr. Reddy's gained 2.4 percent while Reliance Industries advanced 3.3 percent.

Among the sectoral indices, the S&P BSE Healthcare index gained 2 percent followed by energy 1.8 percent and consumer goods 1.6 percent.

Shoppers Stop jumped 6 percent on reports that the company may sell Hypercity stake to Future Group.

ITC gained after brokerage CLSA upgraded stock rating to 'Buy' from 'Underperform' and raised the price target to Rs 310 from Rs 285.

Cadila Healthcare said Zydus Cadila received final approval from the U.S. drug regulator for Desmopressin Nasal spray solution USP. The company's shares rose 4 percent.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.

In Asia, shares advanced, with the Chinese central bank's weekend move to free up more liquidity boosting sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.3 percent to extend three consecutive days of gains.

Equities have been underpinned by upbeat global data, including strong manufacturing activity across much of Asia, Europe and the United States, largely reflecting a broad export boom, Reuters reported.

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