RBI Governor attributed to the upward revision in GDP growth numbers to the current rate of recovery and vaccine hopes for COVID-19.

Sensex crossed 45000 for first timeImage Credit: Picxy.com/1000nachi
Money Sensex Friday, December 04, 2020 - 12:53

The BSE Sensex crossed the 45,000 mark for the first time ever, after the RBI Governor Shaktikanta Das said that the accommodative stance would continue for the rest of FY21 and revised the growth prospects. Around 11.10 a.m., Sensex touched an all-time high of 45,033.19 points. The Nifty50, also touched a fresh all-time high of 13,250.30 points. At the time of writing, Sensex was trading 238 points (0.53%) up at 44,870.67, while Nifty was up 62 points (0.48%) at 13,196.35.

In a video statement after the Monetary Policy Committee's (MPC) meet, Das said that the economic recovery has been faster than anticipated and the real GDP growth for FY21 is projected at (-)7.5 per cent, against the previous estimate of (-)9.5 per cent.

He attributed to the upward revision in GDP growth numbers to the current rate of recovery and vaccine hopes for Covid-19.

He pointed out that the economy has witnessed a faster than anticipated recovery and added that core inflation remains sticky and that consumer price inflation is projected at 6.8% in the third quarter, and 5.8% in Q4.

The MPC, however, decided to keep the repo rate unchanged at 4 per cent in view of the elevated inflation rate.

Addressing the media, RBI governor Shaktikanta Das also said that RBI has strengthened its supervisory measures when it comes to banks, referring to both Punjab and Maharashtra Co-operative Bank (PMC Bank) and Lakshmi Vilas Bank. He added that RBI’s first efforts would be to work with the management and then step in if that doesn’t work.

Around 11.30 a.m., Sensex was trading at 44,936.33, higher by 303.68 points or 0.68 per cent from its previous close of 44,632.65.

It opened at 44,665.91 and has touched an intra-day low of 44,665.91 points.

The Nifty50 was trading at 13,221.30, higher by 87.40 points or 0.67 per cent from its previous close.

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