Sensex ignores RBI move to close 57 pts up, RIL loses 1%

Indian equity benchmarks closed Friday's trade with moderate gains despite key rate hikes and hawkish stance of RBI to maintain anti-inflationary stance. Even the positive global cues were ignored by the benchmarks. Initally, the market reacted negatively to RBI policy announcement, but recovered immediately. However, in the late trade, the sell-off in technology, FMCG along with Reliance Industries and BHEL dragged the benchmarks near previous day's closing value. The 30-share BSE Sensex rose 57.29 points, to end at 16,933.83, after erasing 189 points from day's high of 17,122.54. The 50-share NSE Nifty moved up 8.55 points, to close at 5,084.25.

The Reserve Bank of India (RBI) has raised the repo rate for the 12th time by quarter of a percent point to 8.25% on Friday and reverse repo rate adjusted to 7.25% to tame inflation. However, it kept cash reserve ratio (CRR) rate unchanged.

Experts were expecting that this would be the last rate hike from the central bank but that may not be the case. RBI said it would continue with its anti-inflationary stance as inflation is much above the comfort zone. Even global economic environment has worsened, it said.

Jim Walker, the managing director of Asianomics Limited says the RBI