RBI’s GDP projections, gains in IT stocks help Indian shares trade higher | Stock Market Today- QHN

RBI raised the real GDP for the current financial year to 7.2 per cent from 7 per cent. (File photo)

BENGALURU: Indian shares traded higher on Friday, aided by gains in IT stocks, and as the country’s central bank raised its growth expectations for the current fiscal year while keeping interest rates unchanged as expected.

The NSE Nifty 50 index was up 1 per cent at 23,060 points and the S&P BSE Sensex added 1.2 per cent to 75,941 points after the rate decision.

The Reserve Bank of India (RBI) kept its key interest rate unchanged in a widely expected move as robust economic growth continues to provide space to focus on bringing down inflation, and raised the real gross domestic product for the current financial year to 7.2 per cent from 7 per cent.

The revision reaffirms that the central bank remains upbeat on growth, said Sakshi Gupta, principal economist, HDFC Bank, Gurugram.

On the day, all thirteen sectors were trading in the green.

Heavyweight IT stocks gained 3 per cent after major central banks kick-started their rate easing cycle, adding to expectations that the US Federal Reserve could follow suit.

Wipro, India’s no.4 IT company, advanced 5per cent and was the top gainer on the IT index after winning an order worth $500 mln from a US-based communication services provider.

Bajaj Finance rose 3 per cent after its housing finance unit approved an initial public offering to raise 40 billion rupees.

Investors now await the US non-farm payrolls report, due later in the day, which could influence the trajectory of interest rates in the US, a key market for IT firms.

First Published: Jun 07 2024 | 1:07 PM IST