Sensex gains ahead of RBI policy; ICICI Bank leads
The BSE Sensex gained over 80 points on Tuesday as rate sensitive stocks rallied on rate cut hopes. The Nifty edged past the 5,850 mark, while the rupee gained to 53.93 against the dollar.
The Sensex traded 51 points or 0.26 per cent higher at 19,344, while the Nifty advanced 14 points to 5,849 as of 09.20 a.m.
85 per cent bankers polled by NDTV Profit expect the Reserve Bank to cut repo rate by 0.25 per cent at its mid quarter policy review. Analysts expect the central bank to cut rates to help revive India's faltering economy, taking comfort from moderating core price pressures and the government's commitment to trim the fiscal deficit.
However, a recent uptick in headline wholesale inflation, rising food price-driven consumer inflation and a record-high current account deficit are seen limiting the RBI's space for more aggressive monetary easing.
Market analyst Sarvendra Srivastava said 5,800-5,820 will be crucial levels to watch out today. The Nifty has immediate resistance at 5,900, he added.
Stocks:
Two-wheeler manufacturer Bajaj Auto was the top Nifty gainer as of 09.20 a.m. The stock has seen huge selling over the last few days.
Private lender ICICI Bank, which has fallen following accusations of money-laundering, gained 1.2 per cent. Deutsche Bank retained its 'buy' call on the stock.
Infra lender IDFC, engineering major Siemens India, and realty major DLF advanced over 1 per cent.
17 stocks traded lower on the Nifty, led by state-run power equipment manufacturer BHEL. BHEL shares were down 1.5 per cent after Citi retained its 'sell' call on the stock.
Coal India shares extended losses, falling another 1 per cent, tracking the impending share sale.
Jet Airways shares fell 5 per cent. NDTV had reported yesterday that talks with Abu Dhabi's Etihad Airways for a possible stake sale have hit new roadblocks. Etihad, however, clarified that it continues to be in talks with India's number two carrier.
Global cues:
Asian stock markets rose Tuesday, shaking off jitters sparked by a plan to give bank deposits in Cyprus a haircut to help fund the European country's bailout.
(With inputs from AP)