Sensex rose over 150 points while the broader Nifty moved closer to its crucial psychological level of 8,800 on the back of strong global cues. Meanwhile, hopes of interest rate cut by the Reserve Bank of India on Tuesday also added to the bullish sentiment on the Dalal Street. As of 9:21 am, the Sensex was up 153 points at 28,393 and Nifty rose 41 points to 8,782.
Analysts expect Reserve Bank of India to cut interest rates by 0.25 per cent at its bi-monthly monetary policy review tomorrow.
The Budget 2017-18 is positive for the medium-term inflation outlook which may lead to a 25 bps rate cut at the monetary policy meet, but the Reserve Bank of India is expected to keep it on hold for the whole of 2017, says a Nomura in a report.
According to Japanese financial services major Nomura, though the central bank might go for a policy easing on February 8, it would be a “close call” considering some global factors like higher oil prices and narrowing interest rate differentials.
Meanwhile, buying was visible across the sectors with interest rate sensitive sectors such as banking, auto and real estate among the top sectoral gainers.
From the Nifty basket of shares, 44 were advancing while 7 were declining.
IndusInd Bank, ICICI Bank, Hindalco, Axis Bank, Hero MotoCorp, Bharti Infratel, Bank of Baroda, Tata Motors, BPCL and Grasim Industries were among the gainers. On the other hand, Dr Reddy’s Labs, Idea Cellular, Bosch, ACC, HCL Tech and HDFC were among the notable losers.
The broader markets were outperforming the benchmark indices. The BSE mid-cap index was up 0.84 per cent while the small-cap index rose nearly 1 per cent