Indian Shares Rise as RBI Holds Rates and Supports Rupee
The Reserve Bank of India maintained its key policy rate and neutral stance while introducing tax exemptions for foreign investors to bolster the rupee. Indian equity benchmarks Nifty 50 and Sensex gained as financial sectors responded positively to the central bank's policy stability.
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India kept its benchmark interest rate unchanged on Friday morning, driving the UTI NIFTY 50 ETF up 0.27% to 23,479.95. The Reserve Bank of India maintained a neutral stance while raising its annual inflation forecast to 5.1% from 4.6%. Investors are focused on new tax exemptions for foreign debt capital intended to stabilize the rupee against rising oil costs.
