Rate-sensitive stocks lift Indian shares higher after RBI pause

BENGALURU, Oct 6 (Reuters) - Indian shares held steady on Friday after the Reserve Bank of India stayed pat on key interest rates as expected.

The NSE Nifty 50 index (.NSEI) was up 0.32% at 19,608.50, as of 10:22 a.m. IST, and the S&P BSE Sensex (.BSESN) rose 0.29% to 65,821.50.

The RBIs rate-setting committee kept the key lending rate steady at 6.50%. The central bank also maintained its policy stance of \“withdrawal of accommodation\” to bring inflation within its target band.

The RBI governor retained inflation projection at 5.4% for fiscal 2024, but cautioned that inflation trajectory will be shaped by global food and energy prices, as well as El-Nino conditions.

All the 13 major sectoral indexes advanced, with rate sensitive stocks like realty (.NIFTYREAL), auto (.NIFTYAUTO) and financials (.NIFTYFIN) adding between 0.35% and 1%.

The more domestically-focused mid-caps (.NIFMDCP100) and small-caps (.NIFSMCP100) gained 0.4% and 0.7%, respectively.