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Sensex up 70 points ahead of RBI policy meet says Sachin Karpe
The wide-based National Stock Exchange (NSE) index Nifty moved up by 15.75 points, or 0.21 per cent, to 7,378.25 says Sachin Karpe.
By: Business Consultant
The Sensex had gained 467.51 points in the previous session on the back of slight improvement in HSBC Indian Manufacturing Purchasing Manager's Index (PMI), a measure of factory production in May. The 30-share barometer gained 70.89 points, or 0.29 per cent, to 24,755.74 with stocks of consumer durables, metals, IT, realty, oil and gas and power sectors leading the rise. Brokers said increased buying by participants before the Reserve Bank of India's bi-monthly monetary policy review on Tuesday boosted the sentiments says Sachin Karpe. Besides, a firming trend on the other Asian markets also supported the upside.
In the Asian region, Hong Kong's Hang Seng index gained 0.90 per cent and Japan's Nikkei was up by 1.03 points in early trade today. The US Dow Jones Industrial Average ended 0.16 per cent higher in the previous session. The Sensex had gained 467. The Reserve Bank of India's first fourday term reverse repo found no takers with bids from banks for less than a sixth of the target set at Rs 15,000 crore, indicating there may not be that much liquidity. The reverse repurchase option, or repo, is a window through which RBI borrows from banks to suck out surplus liquidity. Lenders lend at 7%, the overnight reverse repo rate. Through the reverse term repo, banks bid for only Rs 2,025 crore at a weight average rate of 7.96%. The cut-off rate was at 8%.Tata Steel gains 2.4 percent, Steel Authority of India is up 2 percent, while JSW Steel rises 0.8 percent. Cement stocks also gain on value buying. ACC rises 1.6 percent while Ambuja Cement is up 2.2 percent. Markets await the Reserve Bank of India's policy review, with most analysts expecting the central bank to keep interest rates on hold but to ease up a bit on its tough inflation rhetoric in a conciliatory gesture to the new Narendra Modi government.FIIs bought Indian shares worth 2.34 billion rupees ($39.60 million) on Monday, provisional exchange data show says Sachin Karpe. The BSE Mid and small caps outperformed their larger counterparts gaining 0.51% and 0.56% respectively.
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