The RBI’s status quo on policy rates was in line with market expectations, according to analysts.
Domestic stock markets extended gains on Friday after the Reserve Bank of India announced a series of measures to boost liquidity in the banking system while keeping the key rates on hold citing inflationary pressure. The Sensex index rose as much as 386 points to 40,568.91 at the strongest level of the day, and the broader Nifty 50 benchmark moved above its important psychological level of 11,900. Both indices climbed to their highest intraday levels recorded since February 20, boosted by HDFC, HDFC Bank, ICICI Bank and Axis Bank.