Rate-sensitive stocks are trading higher, in a firm market, ahead of the Reserve Bank of India (RBI)'s policy announcement. The RBI Governor Shaktikanta Das will announce decisions of the Monetary Policy Committee (MPC) in an address to the media at 10:00 am. At 9:20 am, the NSE banking and auto indices edged higher up to half a per cent each ahead of the announcement.
In the banking space, Bandhan Bank, HDFC Bank, ICICI Bank and SBI had gained up to 1 per cent each on the NSE. And in the auto space, M&M, Tata Motors, Maruti Suzuki and Bajaj Auto had added 0.4 per cent to 1.5 per cent each.
As Governor Shaktikanta Das begins his address, all eyes will be on any hints of further monetary easing in the coming months, at a time when global financial markets are divided over the prospect of further stimulus to support economies against COVID-19.
The central bank has, since late March, slashed rates by 115 basis points in response to the COVID-19 pandemic. However, it is expected - for the first time since February - to give guidance on economic performance amid the still-spreading coronavirus pandemic and also provide outlook on inflation as well as growth.
The BSE Sensex was trading at 40,291, up 111.18 points or 0.27 per cent, and the NSE Nifty was at 11,865.30, up 31.55 points or 0.26 per cent at the time.