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Sensex Rallies 500 Points; ITC, Grasim & Adani Ports Up 3%
Fri, 8 Apr 02:30 pm

Share markets in India rose sharply in the afternoon session today.

Benchmark indices extended gains after RBI Governor said that the central bank has now prioritised inflation over growth.

At present, the BSE Sensex is trading up by 475 points, up 0.7%. Meanwhile, the NSE Nifty gained 155 points.

Grasim and JSW Steel are among the top gainers today. Cipla, on the other hand, is among the top losers today.

Adani group stocks are again in focus after Abu Dhabi-based International Holding Company (IHC) said it will invest US$2 bn in three companies.

The boards of Adani Green Energy, Adani Transmission and Adani Enterprises approved on Friday IHC's investment through the preferential allotment route.

IHC will invest Rs 38.5 bn in Adani Green while the same amount will be put in Adani Transmission. It will invest Rs 77 bn in Adani Enterprises.

The Adani companies will use the capital for expanding business, strengthening balance sheets, and for general corporate purposes.

In news from the economic space, the six-member monetary policy committee (MPC) today kept rates unchanged and decided to remain accommodative but focus on withdrawal of accommodation to ensure inflation remains within the target while also supporting growth.

The RBI today raised inflation projections for fiscal 2023 to 5.7% from 4.5%, while downgrading real GDP estimates to 7.2% vs 7.8% earlier, given the persistent elevated prices of oil and other commodities.

Bond yields jumped sharply as RBI revised inflation projection. The 10-year bond yield was at 7.002%, a jump of 1.27% since yesterday's close at 6.996%.

Rate-sensitive sectors including bank, auto and realty traded with slight cuts while FMCG stocks witnessed buying.

Speaking of RBI's policy, India's #1 trader Vijay Bhambwani recorded a video yesterday discussing how to respond to an interest rate hike by the RBI.

Tune in to find out more:

More details to follow in the upcoming commentary.

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