Indian equity benchmark -- Nifty -- ended Friday’s trading session in positive terrain with over 2% gains after the Reserve Bank of India (RBI) kept the lending rates unchanged at 6.5% for an eighth straight time. The RBI has also announced an increase in the projected real GDP growth for the financial year 2024-25, setting it at 7.2%, up from the previous estimate of 7%. After making a cautious start, soon index traded in green, as traders took some support after Fitch Ratings projects that the election losses will not prompt major policy shifts. Instead, the upcoming budget in July is likely to offer clearer insights into the government’s economic reform strategies and fiscal objectives for the next five years.
In afternoon session, index continued to trade on higher note. Sentiments remained optimistic, after the Reserve Bank Governor Shaktikanta Das revealed that India's foreign exchange reserves have soared to an unprecedented $651.5 billion as of May 31. The overall reserves have risen by $4.83 billion since the last reported $646.673 billion on May 24. In last leg of trade, index traded near day’s high point and ended with gains of 468.75 points.
