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Sensex gains over 1% ahead of RBI’s monetary policy
Tracking strong cues in Asian markets, India’s benchmark stock indices surged more than 1% on Monday, ahead of the Reserve Bank of India’s monetary policy announcement this week. Auto stocks led the gainers after reporting strong sales growth in September.
Tracking strong cues in Asian markets, India’s benchmark stock indices surged more than 1% on Monday, ahead of the Reserve Bank of India’s monetary policy announcement this week. Auto stocks led the gainers after reporting strong sales growth in September.
The BSE Sensex was up 331.43 points or 1.2% at 28,197.39 and the wider NSE Nifty50 index gained 110 points or 1.3% at 8,721.15 in morning trade.
On the Sensex, Maruti Suzuki was the biggest gainer, accelerating 3.8%, after the company reported a 31% jump in vehicle sales in September. Among other auto stocks, Hero MotoCorp was up 3.1%, Mahindra & Mahindra rose 2.9%, Bajaj Auto was up 2.3% and Tata Motors gained 1.6%.
“Wholesale numbers of four-wheelers and commercial vehicles were higher than expectations. Maruti’s domestic volumes were 14% higher than estimates due to due to inventory buildup for the festive season,” said Ashwin Shetty of Ambit Capital.
Adani Ports, Tata Steel, Sun Pharma, Reliance Industries and SBI were among the other major gainers.
The RBI will announce its bi-monthly monetary policy on Tuesday. This will be the first policy for RBI Governor Urjit Patel and the newly constituted monetary policy committee.
Hopes are high of a 25 basis point rate cut by RBI.
There was positive mood across most Asian markets. Japan’s Nikkei Stock Average rose 0.8% and Hong Kong’s Hang Seng gained 1.3% as worries over health of European banks eased and Japanese shares climbed as yen weakened.
