Benchmark equity indices on Friday finished flat after a day of sedate trading.
HDFC Bank's chief economist Abheek Barua, however, feels that it was "an unexpectedly dovish policy with the RBI highlighting inflation risks (oil, procurement prices, HRA for government employees) but at the same time revising their forecasts downward".
The 30-share index, moving in a tight range for the better part of the session on scattered deals, hit a low of 33,501.37 and a high of 33,697.51 before finishing at 33,626.97 points, up 30.17 points or 0.09 percent. The Nifty too was down by 116.60 points or 1.14 per cent.
Stocks climb higher after early plunge on trade war fears
But economists say a trade war would drag down growth for the US and other countries in a number of ways. Gold, becoming an investor safe haven once again, is gaining by $8 to 1,336 an ounce.
The strong global trend also acted as a catalyst as world markets gained ground after easing of U.S.
After two consecutive sessions of gains, the key indices of the Indian equity markets tumbled on Wednesday after further trade protectionist measures imposed by two major global economies, the U.S. and China, on each other spooked investors. In Asia, Hang Seng and Nikkei rose, while most of the European markets were also trading in the green on Thursday. Intra-day, it shuttled between 10,290.85 and 10,350.45. "PSU banks and pharma stocks outperformed due to gradual accumulation and US FDA approvals", said Vinod Nair, Head of Research, Geojit Financial Services.
The Sensex was down by 351.56 points or 1.05 per cent at the Wednesday's closing. Among the sectoral indices, BSE Metal was down 2.75 per cent, followed by Consumer Durables (-2.55 per cent), Basic Materials (-2.07), Capital Goods (-1.95) and Bankex (-1.63). The Nasdaq jumped 1.45% to end at 7,042 and the S&P 500 rose 1.16% to close at 2,645. In Europe, Frankfurt's DAX fell 0.65 per cent and Paris CAC shed 0.51 per cent in their late morning session. The FTST 100 of the United Kingdom remained nearly unchanged.