Sensex Closes at Record High of 45,000 After RBI’s GDP Forecast
Sensex on Friday, 4 December, rallied 446.90 points to end at a record 45,079.55, while Nifty surged 124.65 points to a new peak of 13,258.55 points, news agency PTI reported.
This came after the Reserve Bank of India (RBI) revised its GDP forecast on Friday, upping the real GDP growth projection for 2020-21 from -9.5 percent to -7.5 percent.
Reserve Bank of India Governor Shaktikanta Das attributed the upward revision in GDP growth numbers to the current rate of recovery and vaccine hopes for COVID-19. He further added that the central bank is projecting GDP growth for Q3 at +0.1 percent and +0.7 percent for Q4.
While outlining the Monetary Policy Committee (MPC) decisions on Friday, Das said that the MPC had voted to leave the repo rate and reverse repo rate unchanged at 4 percent and 3.35 percent respectively. He further added that the Marginal Standing Facility (MSF) rate and the bank rate remain unchanged at 4.25 percent.
Meanwhile, the rupee on Friday rose 13 paise to close at 73.80 (provisional) against the US dollar.