Sensex rises for fifth day, Nifty reclaims 11k-mark
Benchmark indices darted up for the fifth straight session Wednesday on acrossthe-board buying amid expectations of a shift in RBI's policy stance.
The BSE Sensex vaulted 358.42 points, or 0.98 per cent, to close at 36,975.23, while the broader NSE Nifty gained 128.10 points, or 1.17 per cent, to 11,062.45.
Both the indices closed at five-month highs, led by financial services, IT and metal stocks, amid persistent foreign fund inflows.
Analysts said investor sentiment was bullish ahead of the Reserve Bank of India's monetary policy meeting outcome, scheduled for Thursday.
The RBI's Monetary Policy Committee (MPC) began its three-day meet Tuesday to decide on key rates amid expectations that it may change its policy stance to 'neutral' from 'calibrated tightening' on low inflation footprint, even as a rate cut was ruled out by many experts. Only two of the 30 Sensex stocks ended in the red -- IndusInd Bank and Axis Bank, which slipped up to 0.54 per cent.
"Additionally, drop in bond yield and marginal strength in rupee added strength to this expectation," said Vinod Nair, Head of Research, Geojit Financial Services. Sustained buying by foreign institutional investors also propped up the indices at higher levels.