Equities trade higher ahead of RBI policy review outcome

Mumbai, Oct 4 (IANS) Positive global cues, coupled with healthy buying in healthcare, oil and gas and FMCG stocks, pushed the key Indian equity indices higher during the mid-afternoon trade session on Wednesday.

Index heavyweights like Sun Pharma, ITC, Power Grid, Reliance Industries and Dr. Reddy's Lab aided in the upward trajectory of the indices.

According to market observers, investors remained cautious ahead of the monetary policy review outcome of the Reserve Bank of India due later during the day.

At 12.30 p.m., the wider Nifty50 of the National Stock Exchange (NSE) rose by 53.55 points, or 0.54 per cent, to trade at 9,913.05 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,522.17 points, traded at 31,661.14 points -- up 163.76 points, or 0.52 per cent.

The Sensex has so far touched a high of 31,688.73 points and a low of 31,457.78 points during intra-day trade.

The BSE market breadth was bullish -- 1,487 advances and 921 declines.

"After a tepid start, the benchmark indices gained some momentum with the Nifty testing its crucial 9,900 mark. Gains were, however, capped as investors stayed cautious ahead of the Reserve Bank of India's policy outcome scheduled for later in the day," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"The monetary policy committee of the RBI is expected to keep its interest rate unchanged today despite a sharp slowdown in economic growth. Shares of all three state-owned oil marketing companies were trading higher by up to 4 per cent on BSE in early morning trade after the government cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday," he added.

On Tuesday, the benchmark indices surged to close on a higher note as positive global cues, coupled with healthy buying in automobile, consumer durables and oil and gas stocks, lifted investors' sentiments.

The Nifty50 rose by 70.90 points, or 0.72 per cent, to close at 9,859.50 points, while the Sensex closed at 31,497.38 points -- up 213.66 points, or 0.68 per cent.