The Sensex rose by 300 points on June 5, crossing the 74,500 mark, while the Nifty 50 approached 23,500, driven by the Reserve Bank of India's decision to keep repo rates steady at 5.25%. The Bank Nifty also gained over 250 points to reach 54,572, reflecting positive market sentiment following the RBI's announcement and the removal of capital gains tax on government securities for foreign institutional investors, according to livemint.com.
The market rally followed the RBI's monetary policy announcement, which maintained the repo rate at 5.25%, signaling a pause in rate hikes amid stable inflation. Additionally, the government removed capital gains tax on G-secs for foreign institutional investors, encouraging more inflows. These policy moves boosted investor confidence, leading to gains across major indices, as reported by livemint.com and thehindubusinessline.com.
This market movement highlights the impact of RBI's cautious approach to monetary policy and fiscal incentives on investor behavior. The removal of capital gains tax on G-secs for FIIs is expected to attract more foreign investment into Indian debt markets, supporting liquidity and stability. The Sensex's 300-point rise aligns with broader trends of cautious optimism in Indian equities amid global economic uncertainties, as noted by livemint.com.
On June 5, the Sensex closed above 74,500 points, while the Nifty 50 traded near 23,500, marking a significant rebound in Indian equity markets following the RBI's policy announcement and tax changes, according to livemint.com.