Lagatar24 Desk
Mumbai, Oct.8: On Friday, Indian equities benchmarks rose ahead of the Reserve Bank of India’s monetary policy announcement. Tata Motors, Reliance Industries, Infosys, Larsen & Toubro, and Tata Consultancy Services led the Sensex higher by 434 points, while the Nifty 50 index was trading firmly above its critical psychological milestone of 17,850.
Meanwhile, Asian stocks climbed on Friday, with Chinese stocks returning from a one-week holiday on a high note, tracking a global advance, while investors awaited vital US jobs data for further clues on when the Federal Reserve may begin tapering.
The Sensex was at 60,112.71 at 10.28 a.m., while the Nifty 50 index was up 106.35 points to 17,913.90.
To sustain growth, the monetary policy committee is widely likely to keep the repo rate unchanged, while some experts see a tiny chance of a modest increase in the reverse repo rate.
Given that the banking system’s cash surplus has surpassed the 10 lakh crore barrier, market investors will be watching the Reserve Bank’s direction on liquidity withdrawal.
Meanwhile, buying was noticeable across the board, with seventeen of the BSE’s 19 sector gauges trading higher, headed by the S&P BSE Metal index, which gained almost 2%. The indices for automobiles, oil and gas, capital goods, information technology, industrials, basic materials, and consumer discretionary goods and services all rose between 0.6 and 1.2 percent.
Power and Realty indexes, on the other hand, were among the sectoral losers.
S&P BSE MidCap index increased 0.45%, while S&P BSE SmallCap index increased 0.60%.
After Morgan Stanley upgraded its rating on Tata Motors to “overweight” from “equal-weight,” which it had maintained since 2017, saying it expected the automaker’s India business to post a full-year profit after eight years of losses, the stock rose 4% to a new 52-week high of 398, on top of Thursday’s over 10% gain.
