The Reserve Bank of India’s decision to hike the repo rate by an expected 50 basis points on September 30 gave a much-needed boost to the market which had a bad week.
The Nifty not only witnessed a V-shaped recovery after the policy announcement but also went on to reclaim 17,000 with some authority.
But the week was off to a rocky start. On September 26, the market opened with a downside gap amid global weakness. As the day progressed, the Nifty tested the psychological level of 17,000.
In the following session, markets had a positive start which eventually got sold into. Mid-week the Nifty slipped below 17,000 to enter the sub-16,800 territory.