BENGALURU, Oct 8 (Reuters) – Indian shares extended gains on Friday after the central bank kept key interest rates unchanged as expected, while traders waited for its commentary about liquidity normalisation.
At 0438 GMT, the NSE Nifty 50 index (.NSEI) was up 0.66% at 17,906 and the benchmark S&P BSE Sensex (.BSESN) rose 0.63% to 60,038.29
The blue-chip Nifty 50 and the Sensex have gained nearly 10% since the central bank’s policy meeting in August, scaling record highs on easing concerns about a third wave due to rapid vaccinations.
The country’s benchmark 10-year bond yield fell to 6.28% after the decision, while the Indian rupee slipped to 75.15 against the dollar.
“We derive comfort from the fact that the inflation trajectory is turning out to be more favourable than anticipated,” Reserve Bank of India Governor Shaktikanta Das said in his policy address.
Some analysts had signalled a slim chance of the monetary policy committee delivering a token increase in the reverse repo rate. read more
Meanwhile, shares of Tata Consultancy Services (TCS.NS) were up 1.42% ahead of its September quarter results. The IT behemoth kick starts the earnings season, which is being closely tracked for signs of recovery for Indian Inc.
Reporting by Nallur Sethuraman in Bengaluru; Editing by Sriraj Kalluvila
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