Stock market opened higher on Wednesday ahead of the Reserve Bank of India’s policy meeting, at which the central bank is expected to stand pat on interest rates.
The Nifty 50 index was up 0.21 per cent at 25,065.8 points as of 9:15 a.m., while the S&P BSE Sensex added 0.39 per cent to 81,954.58.
The RBI is expected to keep key policy rates unchanged for a tenth consecutive meeting amid inflationary pressures, but the central bank’s hawkish ‘withdrawal of accommodation’ policy stance and comments will be under scrutiny.
The RBI’s policy decision is due at 10:00 a.m..
Inflation risks in India have been compounded by the recent escalation in the conflict in the Middle East, which has pushed up crude prices, analysts at JP Morgan said in a note.
Any dovish commentary on the economy or rates will aid momentum in domestic equities, especially in rate-sensitive sectors such as real estate, auto and banking, analysts said.
India’s benchmark indexes Nifty 50 and S&P BSE Sensex snapped a six-session losing streak on Tuesday, as investors bought the dip, while better-than-expected results for the ruling party in a state assembly election also supported sentiment.
Other Asian markets opened higher with the MSCI Asia ex-Japan index rising 0.7%. Wall Street equities settled higher overnight.
On the day, twelve of the 13 major sectors advanced. The broader, more domestically-focussed small- and mid-caps gained about 0.6 per cent each.
Among individual stocks, Torrent Power jumped 4.6 per cent after securing two orders from Maharashtra State Electricity Distribution Company Ltd for building a total of 2,000 MW energy storage capacity.
Employment services provider Aarvi Encon climbed 20 per cent on winning an order worth ₹173 crore ($20.6 million). ($1 = 83.9300 Indian rupees)
