Indian shares advance as interest rate remain steady

Gulf Today Report

Indian shares gain on Friday, its highest records due to central bank keeping interest rates steady despite high inflation. It also held onto its accommodative monetary policy stance.

The NSE Nifty 50 index was up 0.80% at 13,239.05 as of 05:12 GMT, while the S&P BSE Sensex was up 0.80% at 44,993.92. Both indexes hit record highs. The Indian rupee strengthened to 73.72 against the dollar.

Shaktikanta Das, Reserve Bank of India Governor said India’s economic recovery remains positive as COVID-19 vaccines are set to be available soon.

The vaccine development has flipped positive and projected GDP for the current year to contract just 7.5%. 

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According to the poll, analysts and economists are not expecting much difference in rates.

"RBI has been extremely proactive in terms of providing support to the economy and the market in whichever way possible," said Avneesh Sukhija, a senior financial analyst at BNP Paribas India.

 The India benchmark index has hit a record high for 11 of the last 18 sessions due to progress in the development of coronavirus vaccine. The index added more than 11% in November from foreign investors.