Stock markets zoom over RBI's GDP forecast, Sensex up over 1 pc

Mumbai, June 7: The India stock market extended morning gains after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) raised India's real GDP forecast to 7.2 per cent for FY25 from earlier 7 per cent.

The MPC also decided to keep the policy rates unchanged at 6.5 per cent.

The news came as a boost for markets as Sensex went up 1 per cent and Nifty topped 23,000.

The BSE Midcap and BSE Smallcap gained 0.7 per cent and 1.6 per cent, respectively.

According to experts, the weekly jobless claims report in the US on Friday and the ministry allocations in India over the weekend will provide a further boost to market sentiments.

On Thursday, all 13 sectoral indices were in the green, with IT, financial services, and oil and gas stocks leading the gains in the Nifty.

Infosys, Wipro, and TCS led the Nifty IT index to rise over 3 per cent.

RBI Governor Shaktikanta Das said the GDP growth in the first quarter of 2024-25 is likely to be at 7.3 per cent, 7.2 per cent in Q2, 7.3 per cent in Q3, and 7.2 per cent in the last quarter.

Das said that the pattern of world crisis continues, but India is headed for sustained high growth based on its demographics, productivity and the right government policies in place.

"However, at the same time, we need to be vigilant in the backdrop of an unsettled global environment,” Das said.

This is the eighth consecutive time that the RBI has left the interest rate unchanged.