Benchmark indices for Indian stocks continued to rise on Wednesday, maintaining the gains made the day before. The Nifty and Sensex have increased by 0.5 percent since Tuesday’s closing bell. Following gains in financial, automotive, and IT shares on Tuesday, benchmark indices Sensex and Nifty rebounded nearly 1% from their Monday losses brought on by the Israel-Hamas conflict. The growth projection of India was raised by the multilateral agency IMF, which probably helped the stock indices. The IMF revised its forecast for this fiscal year to 6.3%, which is 20 basis points (one percentage point is equivalent to 100 basis points) higher than what it had predicted in its earlier report. The IMF ascribed the growth estimate’s upward projection to India’s higher-than-expected April–June consumption.
IMG has raised India’s growth outlook for the second time since April – from 5.9 per cent in April, 6.1 per cent in July, and 6.3 per cent now, taking it closer to the 6.5 per cent predicted by the country itself.
The monetary policy committee of the Reserve Bank of India (RBI) in its October review meeting, decided to keep the policy repo rate unchanged at 6.5 per cent, maintaining the status quo for the fourth straight occasion. It too lent some stability to the domestic financial markets. The repo rate is the rate of interest at which the RBI lends to other banks.