CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Indian shares zoom on RBI’s accommodative policy stance

By Munikoti Rochan

10:48, 8 December 2021

An image of arrows pointing upwards
The Reserve Bank of India holds interest rates steady – Photo: Shutterstock

Indian stocks gained the most in over 10 weeks to finish higher on Friday, boosted by the central bank’s decision to leave key policy rates unchanged.

The National Stock Exchange’s (NSE) Nifty50 index ended 1.71% higher at 17,469.75 points while the S&P BSE Sensex closed 1.76% higher at 58,649.68 points.

All 15 Nifty sectoral indices ended in the green on 8 December.

  • The Public Sector Undertakings (PSU) Bank index, comprised of 13 lenders including Indian Bank, surged 2.57%
  • The Media index, a basket of 10 entertainment stocks including multiplex operator Inox Leisure, shot up 2.51%
  • The Auto index, comprised of 15 automotive stocks including parts manufacturer Bharat Forge, jumped 2.31%

The Indian rupee was trading 0.087% lower to the US dollar, to INR75.47 as of 15:58 hours local time (UTC+5:30).

The Reserve Bank of India lends funds to banks at the ‘repo rate’. With today’s decision, the benchmark rate has been held at its lowest levels for over nine decision making meetings of the monetary policy committee. The move is expected to further bolster the ongoing economic recovery amid the Omicron virus threat.

On the Nifty50

Shares of lender Bajaj Finance (BAJFINANCE), the country’s leading carmaker Maruti Suzuki India (MARUTI) and aluminium manufacturer Hindalco Industries (HINDALCO) were the top gainers, adding 3.62%, 3.19% and 3.14% respectively.


0.66 Price
-0.830% 1D Chg, %
Long position overnight fee -0.0074%
Short position overnight fee -0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.00006


1.08 Price
-0.530% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0003%
Overnight fee time 22:00 (UTC)
Spread 0.00006


0.66 Price
-0.830% 1D Chg, %
Long position overnight fee -0.0074%
Short position overnight fee -0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.00006


1.26 Price
-0.590% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00013

HDFC Life Insurance Company (HDFCLIFE), Kotak Mahindra Bank (KOTAKBANK) and the Power Grid Corporation of India (POWERGRID) were the top losers, shedding 1.17%, 0.78% and 0.34% respectively.

On the Sensex

Stock in BAJFINANCE, MARUTI and State Bank of India (SBIN) were the biggest gainers adding 3.67%, 3.48% and 3.11% respectively.

KOTAKBANK and POWERGRID were the biggest losers, shedding 0.85% and 0.49% respectively.

Omicron fears

“Low vaccine coverage makes India's economy highly vulnerable to the emergence of the Omicron variant,” research firm Capital Economics’ senior India economist Shilan Shah wrote in a note to clients on 3 December.

“The crumb of comfort is that there is policy space to soften some of the economic blow from a new outbreak. The fiscal position is healthier than usual for this time of year…” he added.

Read more: Indian cloud services firm ESDS gets nod for IPO

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading