Indian Equities Climb As RBI Raised GDP Target

Indian Equities Climb As RBI Raised GDP Target

04 Dec 2020 04:48 PM

India's benchmark stock index retreated to close above 45,000 points for the first time ever as the RBI upgraded its GDP target for the current fiscal year and kept interest rates steady amid high inflation.

RBI Governor Shaktikanta Das said India's prospects have brightened with progress on coronavirus vaccines, and projected real GDP for the current financial year to shrink just 7.5% from an earlier expectation of a 9.5% contraction.

The S&P BSE Sensex closed 1% higher at 45,079.55 while the NSE Nifty 50 index ended 0.95% higher at a record closing high of 13,258.55.

The Nifty Banking index ended higher by 2.05%.

UltraTech Cement closed 4% higher after touching a record high earlier in the session, a day after the cement manufacturer said it would invest 54.77 billion rupees to expand capacity.

Steel Authority of India closed 1.2% higher after reporting higher crude steel production and sales for November.