RBI rate cut hopes, earnings season lift Indian equities

RBI rate cut hopes, earnings season lift Indian equities
IndiaTV News31 Jul. 13:25

Indian equity markets traded with appreciable gains during the mid-afternoon session on Monday as hopes of a rate cut in the upcoming monetary policy review of the Reserve Bank of India (RBI), coupled with expectations of healthy quarterly results, kept investors' sentiments buoyed.

Besides, the key equity indices pared their Friday losses on the back of intense buying activities in banking, capital goods and metal stocks.

At 12.45 p.m., the wider Nifty50 of the National Stock Exchange (NSE) rose by 37.25 points or 0.37 per cent to trade at 10,051.75 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,412.20 points, traded at 32,462.92 points -- up 153.04 points or 0.47 per cent, from its previous close of 32,309.88 points.

The Sensex has so far touched a high of 32,517.28 points and a low of 32,324.45 points during intra-day trade.

The BSE market breadth was bullish with 1,312 advances and 1,177 declines.

"The benchmark Nifty today climbed to 10,043 and the Sensex surged over 133 points in the opening session, with the help of a strong dose of better-than-expected corporate earnings. The rally came on buying in capital goods, metal, oil and gas, consumer durables and banking stocks," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"L&T, the engineering and construction conglomerate, rose 3.97 per cent after the company on Friday reported better-than-estimated earnings for the first quarter with a 50.59 per cent jump in consolidated net profit, which in turn helped the NSE index.

It is the policy week and all hopes are set for an interest-rate cut when the RBI's monetary policy committee meets on August 2," Desai said.

On Friday, the benchmark indices took a breather and closed on a subdued note as negative global cues, coupled with disappointing quarterly results and heavy selling pressure in healthcare, metal and banking stocks hampered investors' sentiments.

The NSE Nifty50 fell by 6.05 points or 0.06 per cent to close at 10,014.50 points, while the Sensex closed at 32,309.88 points -- down 73.42 points or 0.23 per cent.