Indian equity benchmarks rose to end at their highest level in six months amid buying by foreign portfolio investors (FPI) and hopes that the Reserve Bank of India (RBI) will keep the rates unchanged on Thursday. The Sensex ended the session at 63,143, a gain of 350 points or 0.5 per cent. The Nifty closed at 18,726, up 127 points or 0.7 per cent. For the Sensex and the Nifty, the latest close is the highest since December 1, 2022, the day they logged their all-time closing high of 63,284 and 18,813, respectively.
Given the strong momentum in the market, the indices will log new highs in a day or two, said experts.
FPIs on Wednesday were net buyers of shares worth Rs 1,382 crore, according to provisional data from exchanges. So far in June FPIs have been net buyers to the extent of Rs 7,731 crore, and Rs 36,990 crore for the year. Corporate earnings, which have come in line with expectations and positive macroeconomic data, have kept foreign investors bullish on India.
The RBI will announce the outcome of its monetary policy meeting on Thursday. It is widely expected to keep the repo rate unchanged as consumer price inflation has come below its upper tolerance limit of 6 per cent.
The market breadth was strong, with 2,259 stocks gaining and 1,302 declining on BSE. Four-fifths of Sensex stocks gained. Reliance Industries rose 0.7 per cent and contributed the most to Sensex gains. The gains were broad-based, with the BSE Midcap index rising 1.05 per cent and BSE Smallcap by 1.2 per cent.
"Nifty has finally surpassed the hurdle at 18,700, but the prevailing underperformance of the banking pack is still weighing on the sentiment. We may see choppiness due to the outcome of the MPC's policy meeting and scheduled weekly expiry on Thursday. Amid all, we reiterate our positive view and suggest focusing on identifying opportunities from the leading sectors,' said Ajit Mishra, SVP - Technical Research, Religare Broking.
RBI Monetary Policy: Repo rate up by 25 bps, FY23 inflation pegged at 6.5%
MPC lowers projection for inflation, raises growth outlook a bit in FY24
RBI MPC: When and where to watch policy announcement by Shaktikanta Das
RBI MPC increases repo rate by 25 bps, pegs FY24 inflation at 5.3%
RBI monetary policy: MPC votes for pause, keeps repo rate unchanged at 6.5%
Adani stocks gain up to 5% after stock exchanges widen circuit filters
Demat account openings rise in May, total count at new high of 118.2 mn
Suzlon Energy soars 18% to hit over 5-year high amid heavy volumes
Tata Motors market cap scales record high; tops Rs 2 trillion mark
Axis Bank joins Rs 3-trillion market cap club; stock surges 7% in one week
Apart from the monetary policy outcome, investors will track economic data from US and China for further cues.