India Stocks, Bonds Gain as RBI to Keep System Flush With Cash

  • Policy panel decided to stick with an accommodative stance
  • RBI reduces its economic contraction forecast for India

National Stock Exchange (NSE) in Mumbai.

Photographer: Dhiraj Singh/Bloomberg
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India stocks rose along with bonds after the Reserve Bank of India pledged to ensure adequate liquidity in the system while keeping interest rates low to support growth.

The S&P BSE Sensex climbed 1% at the close, while the NSE Nifty 50 Index gained by about the same magnitude. Both gauges have added at least 2% this week and closed at new highs after a fifth straight week of gains.