Sensex Edges Higher Ahead Of RBI Policy, Nifty Trades Above 8,150

The Sensex and Nifty edged higher in morning trades today ahead of Reserve Bank of India’s monetary policy review on the back of buying in rate sensitive shares. However, the gains were capped owing to weakness in heavyweight pharma shares.

The Sensex jumped 77 points to hit high of 26,469.93 and Nifty advanced 27 points to 8,170.70.

The Reserve Bank of India’s monetary policy review is expected later in the day. RBI Governor Urjit Patel-led Monetary Policy Committee is widely expected to cut interest rates today as the economy reels from the aftermath of demonetisation. But economists differ about the quantum of rate cut: 25 or 50 basis points.

The Street is expecting a 25 bps rate cut but if there is a 50-bps cut it would be big positive for markets.

This will be RBI’s first monetary policy review after demonetisation of high value notes.

Meanwhile, on Dalal Street most of the sectors were witnessing buying interest barring a few pharma stocks.

Rate sensitive- banking, auto and real estate stocks were trading higher in hopes of interest rate cut by the RBI. The respective indices rose 0.4-0.5 per cent each.

From the Nifty basket of shares, 40 were advancing while 11 were declining.

Ambuja Cements was among the top Nifty gainers, up 1.14 per cent to Rs. 213. Adani Ports, BPCL, HDFC, Bosch, Hero MotoCorp, State Bank of India, Hindustan Unilever, HCL Technologies and Maruti Suzuki were also among the gainers.

On the other hand, Sun Pharma, Zee Entertainment, Aurobindo Pharma, TCS, Dr Reddy’s Labs and Reliance Industries were among the notable laggards.

The broader markets were trading higher with BSE mid-cap and small-cap indices up 0.4 per cent each.

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Source:ndtv

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