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Indian shares surge on RBI rate hike to close best qtr in a year

Friday,   30-Sep-2022   04:13 PM (IST)

Indian shares rose on Friday to record their best quarter in a year, boosted by banks and metal stocks, after the country's central bank hiked its key policy rate for the fourth straight time as expected to bring down persistently high inflation. The NSE Nifty 50 index ended up 1.6% at 17,094.35, and the S&P BSE Sensex gained 1.8% to 57,426.92. Both the indexes posted their biggest percentage jump in a month, breaking a seven-day losing streak. The Nifty and the Sensex ended up more than 8% this quarter. The Reserve Bank of India (RBI) has now raised interest rates by a total 190 basis points since its first unscheduled mid-meeting hike in May but inflation continues to remain stubbornly high - a phenomenon that is affecting much of the global economy. The rate sensitive Nifty bank index rose 2.6%, while the financials gained 2.2% and metals added 2.2%. Hindalco Industries was the top gainer on Nifty 50 index, rising 5.2%. The RBI, which has been spending massive forex reserves to arrest the rupee's fall against the strong U.S. dollar, said the context of adequacy of foreign exchange reserves is always kept in mind while intervening.