Money on the markets
A maturing market amid the mayhem
The small and medium enterprises (SME) sector, which accounts for almost 45 percent of India’s manufacturing output and 40 percent of its exports, is hoping the Reserve Bank of India (RBI) will keep its key rates unchanged in its policy review on January 29.
Last year had been shaky for the SME sector, but with the course of time and government intervention it regained its foothold in the market.
“If there is an interest rate hike now, it will have an adverse effect on the productivity of the SME sector,” Salil Singhal, chairman of CII’s MSME Council, told Reuters.
Interest rates in India are still very high in comparison to international rates, he added.
The BSE Sensex closed 6.4 percent higher on Monday, its biggest one-day gain in six months, boosted by encouraging manufacturing data at home and renewed investor activity across Asia.
The benchmark closed 731.5 points higher at 12,134.75, while the Nifty ended 5.1 percent higher at 3654.
The rise in the Sensex was led by Reliance Industries, Infosys and ICICI Bank.
On the sectoral front, the BSE Metal Index gained nearly 8.7 percent. This was followed by the IT Index which ended up 8.4 percent. All sectoral indices closed the day in the green.