The market indices on Thursday rallied after the Reserve Bank of India (RBI) kept its repo rate and reverse repo rate unchanged at 6 percent and 5.75 percent respectively. Adani Ports, Cipla, Reliance Industries, Bajaj Finance, Sun Pharma were the other prominent gainers in the Nifty.
Amid hopes the US and China will work on a compromise to prevent a trade war and on expectations that the Indian economy will be on track in the coming quarters, the bulls got back to ring today. The trend continued when the market opened today and bank stocks kept moving higher and higher as the session progressed.
The broader Nifty of the National Stock Exchange gained 196.75 points, or 1.94%, to close at 10,325.15.
Besides the global trade tension, local investors were edgy ahead of the RBI's monetary policy announcement on Thursday. The US Dow Jones Industrial Average closed 0.99 per cent higher in yesterday's trade. The BSE Sensex fell almost 100 points to retest the 33,500 level while the Nifty50 index fell over 30 points to briefly break the 10,300 level.
The gauge had soared nearly 578 points in the previous session after the RBI kept the policy rate unchanged but said growth will rebound this fiscal amid softening inflation. Intra-day, it shuttled between 10,290.85 and 10,350.45. At 9.15am, the home currency was trading at 65.02 a dollar, up 0.19% from its Wednesday's close of 65.15.
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: "For the coming session, the immediate hurdle is placed in the zone of 10187-10230 and on the downside, last Wednesday's low of 10096 would be a crucial support". The index has spent the week swinging wildly in and out of negative territory amid the back-and-forth of the US-China trade dispute.