Indian shares retreat following cenbank announcement

Gulf Today Report 

Indian shares declined on Friday following central bank’s decision to keep interest rates at record lows while being accommodative.

The NSE Nifty 50 index was up 0.5% at 14,969 by 04:41 GMT, while the S&P BSE Sensex gained 0.64% to 50,958.96.

The Reserve Bank of India kept rates steady, as widely expected, and reiterated that it will continue to support the recovering economy by ensuring ample rupee liquidity in the banking system. 

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The central bank’s announcement strengthened the Indian rupee to 72.94 against the dollar.

Neeraj Dhawan, director at Quantum Securities in New Delhi said, "the MPC's (monetary policy committee) decision is more or less in line with expectations. There was nothing in the announcement to help propel the markets higher."

The RBI has already cut its key interest rate by a total 115 basis points since March 2020 to revive growth and cushion the impact of the COVID-19 pandemic.