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Nifty and Sensex Benefit Before RBI Conference

Security guards pass by the building of the Indian National Stock Exchange in Mumbai, India.

Dhiraj Singh | Bloomberg | Getty Images

Indian equities hit a record high on Wednesday as investors remained bright in the middle of the corporate earnings season and ahead of the central bank’s policy meeting.

NS Nifty 50 Index Driven by a 2.44% rise in the Financial Services Index, it rose 0.79% to 16,258.05. Previously, the benchmark reached a session high of 16,290.20.

On Tuesday, Nifty 50, which represents the weighted average of 50 of the largest Indian companies on the National Stock Exchange, closed above the 16,000 level for the first time.

Meanwhile, the S & P Sensex rose 0.79% on Wednesday at 54,247.64, retreating from the session high of 54,440.80.

Bank of India’s share has risen: HDFC 2.6% up Axis Bank 1.8% increase, ICICI Added 3.2%.

State Bank of India However, stocks fell 0.4%. India’s largest public lender will report earnings for the three months to June Wednesday.

Focus on RBI

The Indian market has held up relatively well despite the economic struggle since last year to get growth back on track — progress has been slowed by this year’s devastating second wave of Covid-19.

Investors also The Reserve Bank of India will start a three-day monetary policy meeting on Wednesday.Central bank Interest rates are not expected to change..

In a memo last week, Singapore’s DBS Group Radika Lao said, “RBI MPC is unlikely to shake (policy) boats in August, choosing to keep the repo rate at 4% and not change the policy corridor. “.

“Forward guidance will support the continuation of an accommodative policy stance to prevent growth risks, especially the third covid wave,” she said. “The accompanying commentary will pay attention to inflation risk through close scrutiny and refrain from fine-tuning policy levers for now.”

India’s retail inflation in May and June exceeded RBI’s inflation target of 2% to 6%.

India’s growing individual investor

India’s stock market resilience has seen an influx of retail investors despite a pandemic-led economic struggle.

Participation in the retail industry may have increased, partly due to the low interest rate environment. RBI has also introduced measures Injects more liquidity into the system To help the economy recover.

According to CEO VikramLimaye, the Indian National Stock Exchange, which manages the Nifty 50 Index, has added approximately 15 million new investors to the market in the last 15 months.

“Retailer participation in the Indian stock market was a very important factor. Almost 50% of market activity is non-institutional and non-exclusive. It mainly covers the retail situation.” He is a CNBC “Street sign asia” on Wednesday.

NSE data showed In the very ending fiscal year from April 2020 to March 2021, 45% of the stock exchange’s participation in the capital markets was from individual investors.

“This is a good trend, because it improves retail participation in the market, penetration is still low, and there is a long way to go,” says Limaye.

He added that as exchanges are taking steps to improve investor education, people are aware of the negative risks of personal investment and can invest based on their knowledge and risk needs.

Nifty and Sensex Benefit Before RBI Conference

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