Indian equity benchmarks moved higher on Friday ahead of the Reserve Bank of India’s monetary policy decision. Sensex rose up to 297 points on gains in Tata Motors, Reliance Industries, Infosys, Larsen & Toubro and Tata Consultancy Services and Nifty 50 index was trading strongly above its crucial psychological level of 17,850. Meanwhile, Asian stocks rose on Friday as Chinese stocks returned from a week-long holiday, tracking a global rally, while investors looked at key US jobs data for any new insights into the timing of the Federal Reserve tapering. Look too.
As of 9:21 am, the Sensex rose 176 points to 59,854 and the Nifty 50 index rose 88 points to 17,878.
The Monetary Policy Committee is widely expected to maintain status quo on the repo rate to support growth, but some analysts see a slim chance of a nominal hike in the reverse repo rate.
Market participants will keep an eye on the Reserve Bank’s guidance on liquidity withdrawal, noting that the surplus liquidity in the banking system recently topped Rs 10 lakh crore.