Sensex above 200 points

Mumbai, Dec 18 –  Stocks, bonds and the rupee rallied on Wednesday after the Reserve Bank of India (RBI) held rates steady despite the high retail and wholesale price inflation which had prompted investors to discount a quarter percentage point rate increase.

 

The RBI unexpectedly kept the policy interest rate on hold on Wednesday, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy.

 

The benchmark 10-year bond yield fell as much as 15 basis points on the day to 8.76% after the policy review.

 

The partially convertible rupee was trading at 61.81/82 per dollar versus its previous close of 62.01/02.

 

The benchmark BSE sensex was up 1.1%, while the Nifty rose 1.2%.

 

Source: PTI