Sensex up 100 points, Nifty tops 12,050 ahead of RBI money policy outcome

Capitalstars Investment Advisor

Benchmark equity indices BSE Sensex and NSE Nifty opened higher on Thursday ahead of the Reserve Bank of India's bi-monthly monetary policy outcome due later today. Gains in global markets also supported the sentiment back home.

The 30-share Sensex was up nearly 100 points at around 40,928 in early trade, while the 50-share Nifty index was up 20 points at 12,063.

Rohit Singre, Senior Technical Analyst at LKP Securities said, “Nifty on Wednesday managed to close above the psychological level of 12,000 which hints bulls are trying to gain momentum on every dip, now immediate support for Nifty is coming near 11,965-11,920 zone and resistance is coming near 12,090-12,130 zone.”

There is an expectation of a 25 bps rate cut by the central bank to support growth and revive the investment cycle.

As many as 16 stocks in the Sensex pack were trading in the green with Reliance IndustriesNSE 0.39 % gaining 1.60 percent. It was followed by Tata Motors (up 1.30 percent), Hero Moto Corp (up 0.77 percent), Larsen & Toubro (up 0.68 percent) and Maruti Suzuki (up 0.54 percent).

On the other hand, Bharti AirtelNSE -2.23 %, Sun Pharma, InfosysNSE 0.31 %, Asian Paints, Tech Mahindra NSE 0.51 % and Hindustan UnileverNSE -0.40 % were down between 0.50 percent and 1.40 percent.

Hit by heavy losses and large government dues after the Supreme Court verdict on adjusted gross revenue (AGR), Bharti Airtel’s board on Wednesday decided to raise up to $3 billion (about Rs 21,500 crore) via debt and equity, looking to strengthen its financial position.

Sectorwise, the BSE Energy, Consumer Durables, Auto and Bankex gained 1.07 percent, 0.63 percent, 0.45 percent, and 0.34 percent, respectively. The BSE Telecom index and IT were down 1.37 percent and 0.50 percent, respectively.

The US markets ended higher on Wednesday amid a report that a phase-one trade US-China trade deal was still in the works. Asian peers Hang Seng, Nikkei and Shanghai were also trading in the green on Thursday on signs the United States and China were on track for a preliminary trade deal.