Benchmark indices extended gains on Wednesday after the Reserve Bank of India (RBI) kept key interest rates unchanged and promised adequate policy support to help sustain a durable economic recovery amid worries around the Omicron coronavirus variant.
Sensex zoomed 906 points intra day to 58,539 and Nifty gained 260 points in afternoon session after the central bank announced its monetary policy.
Before the MPC announcement, Sensex was trading over 700 points higher and Nifty rose 220 points to 17,400.
“The (monetary policy) committee is of the view that the sharp and sustained reduction in new COVID-19 infections and the rise in vaccination coverage are contributing to consumer confidence and business optimism,” Reserve Bank of India (RBI) Governor Shaktikanta Das said in his policy address.
The RBI said it would continue to manage liquidity “in a manner that is conducive to entrenching the recovery and fostering macroeconomic and financial stability”.