Indian stocks turned flat after hitting fresh high in early trade. The Nifty hit a fresh peak of 10,137 while Sensex rose over 100 points to 32,686. The RBI would be announcing it monetary policy decision later in the day. Most economists expect the RBI to lower its repo rate by 25 basis points while some even say that the central bank could even go for a 50-basis-point rate cut. Banking stocks, which have outperformed in the recent rally, edged higher on hopes of a rate cut. Other rate sensitive sectors such as realty and auto also saw some buying. However, some selling pressure was seen in metal and oil & gas stocks.
Elsewhere in other global markets, Asian stocks edged higher as strong earnings results from tech bellwether Apple boosted shares of Apple suppliers. Shares in the world’s most valuable company surged 6 per cent after hours to a record of more than $159, taking its market capitalisation above $830 billion. That should help carry the Dow through the 22,000 mark when trading resumes in New York. E-Mini futures for the Dow were up 0.2 per cent in Asia trade. MSCI’s broadest index of Asia-Pacific shares outside Japan was steady, having hit its highest since late 2007. Japan’s Nikkei rose 0.4 percent.
At 9:36 am, Nifty had given most of its early gains and was trading flat at 10,111 while Sensex was up 50 points.
Among Nifty50 shares, NTPC, Lupin, Hero MotoCorp and Bosch were up between 1-2 per cent. Market heavyweight RIL rose nearly 1 per cent. Other major losers, ONGC, Dr Reddy’s and ACC were down around 1 per cent.