Indian shares extend gains ahead of RBI rate decision
- Nifty 50 rose 0.98% to 22,776.10, while the Sensex gained 0.95% to 73,067.81.
Indian shares extended gains on Tuesday, led by banks and fashion retailer Trent, which advanced on positive business updates, as supportive global cues aided sentiment ahead of a key central bank policy decision a day later.
The Nifty 50 rose 0.98% to 22,776.10, while the Sensex gained 0.95% to 73,067.81. The indexes gained about 0.6% in the previous session, after logging their longest weekly losing streak in 25 years through Friday.
“Domestic markets rebounded from oversold levels last week as bank quarterly updates, particularly credit and deposit growth, underscored the economy’s underlying resilience,” said Kranthi Bathini, director of equity strategy at Wealthmills Securities.
The policy rate decision on Wednesday and quarterly earnings of Tata Consultancy Services on Thursday are the near-term triggers for the markets, analysts said.
Investors expect a 25-basis-point rate hike, and the commentary would be watched for signs of further tightening, Bathini said.
Fourteen of the 16 major sectors rose while the broader small-caps and mid-caps gained 1.6% and 1.1%, respectively.
Financials, banks and private bank index gained between 0.75% and 1.5%, led by a 2.1% rise in Axis Bank and a 3.8% jump in Kotak Mahindra Bank after the lenders reported a rise in advances and deposits.
Heavily weighted Reliance Industries gained 2.7%, taking its two-session rise to 4.3%, ahead of the likely listing of Jio Platforms later this month and on a weightage-increase by Jefferies in its India portfolio.
Trent surged 12.6% after the apparel retailer projected a 23% year-on-year rise in standalone revenue for the September quarter.
Dabur India and Godrej Consumer gained 2.7% and 4.2% on upbeat quarterly updates.
Meanwhile, Brent crude futures dropped about 2% to trade below $100 a barrel on increased Middle East oil exports and a G7 pledge to raise supplies.
Asian and European stocks advanced as global bond yields retreated from multi-decade highs hit in the previous session.