Benchmark indices continue to maintain the upbeat trend supported by strong global cues along with buying in Tata group and auto shares leading the rally. Besides, investors are bracing for the ECB’s policy-setting meeting today.
By 10:30 am, the S&P BSE Sensex was up 377 points at 26,613 and the Nifty50 gained 115 points at 8,217. The broader markets are performing in line with the benchmark indices- BSE Midcap and Smallcap indices are up over 1%.
“Traders will need to watch if the Nifty can hold above the immediate supports of 8,056; else a further correction is likely,” adds Subash Gangadharan – Technical/Derivative Analyst, HDFC Securities.
Asian shares hopped higher on Thursday after Wall Street strode to new records and bonds rallied on wagers the European Central Bank would extend its asset buying campaign at a policy meeting later in the session.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.8% to a one-month top, while Australia jumped 1.3% helped by rising resource prices.
Japan’s Nikkei put on 1%, brushing off a disappointing downward revision to economic growth for the third quarter.
Back home, RBI’s monetary stance remained accommodative, but it warned inflation could rise again. Only two of 12 economists and bankers polled by Business Standard had said they expected RBI to hold interest rates and the bond market had factored in a cut of a quarter of a percentage point.
“This is a good tactical call as this will still leave a chance with RBI Governor to see how the global economy reacts to FED move and then take a call on domestic Interest rates. One of the reason of not reducing Interest rate could be possibility of FED increasing the rate in the next week’s meeting,” said Motilal Oswal, Chairman & MD, Motilal Oswal Financial Services.
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