Sensex jumps 150 points ahead of RBI policy outcome
BSE benchmark Sensex jumped over 150 points in early trade Thursday on sustained buying by domestic and foreign institutional investors, ahead of RBI’s policy outcome later in the day.
New Delhi: BSE benchmark Sensex jumped over 150 points in early trade Thursday on sustained buying by domestic and foreign institutional investors, ahead of RBI’s policy outcome later in the day.
The 30-share index was trading 161.53 points or 0.44 per cent, higher at 37,136.76.
Similarly, the 50-share NSE Nifty rose 33.05 points or 0.30 per cent to 11,095.50.
According to traders, domestic investors remained bullish tracking sustained inflow from domestic and foreign funds, amid hopes that the RBI may change its policy stance to ‘neutral’ from ‘calibrated tightening’ on low inflation footprint, even as a rate cut was ruled out by many experts.
The RBI’s Monetary Policy Committee (MPC) is scheduled to announce its policy decision later in the day.
“Central banks in Asian markets from India to Indonesia are expected to halt interest rate hikes and possibly signal rate cuts as falling inflation and US Fed’s decision to put break on tightening interest rate cycle has left enough room for interest rate cuts,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
“Decline in rates will reduce the cost of capital and potentially fuel rally in equity markets,” he stated.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 694.97 crore on Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 525.26 crore, provisional data available with BSE showed.