Indian stock market indices Sensex and Nifty moved higher in early trade today; led by gains in banking and IT stocks.
The RBI is widely expected to cut its benchmark interest rates, or the repo rate, for the fifth time this year to boost growth.
The Sensex was up over 250 points in early trade while Nifty moved higher to 11,386. Yes Bank shares were up 5%, extending gains after rising over 30% in the previous session. Other top Sensex gainers included IndusInd Bank, Hero MotoCorp, HDFC, SBI, Tech Mahinda and TCS, up between 1% and 2%.
“Till the market is above 11247 on Nifty, there would be ample of chances for the market to pull recent losses by hitting the level of 11500/11550. However, below 11247, Nifty could further fall to levels of 11180,” said Shrikant S. Chouhan, senior vice-president at Kotak Securities.
The RBI is widely expected to cut its benchmark interest rates or the repo rate; for the fifth time this year to boost growth.
India’s economic growth expanded by just 5% in the June quarter, its slowest pace since 2013. That has raised expectations the RBI will be forced to further downgrade its growth projection of 6.9% for the current fiscal year.