The S&P BSE Sensex rose 0.44% to 59,376. (File)
Bangalore:
Indian stocks opened slightly higher on Wednesday, aided by strong quarterly updates from financials and banks, as concerns over inflation kept investors cautious a day before the Reserve Bank of India’s monetary policy decision.
The Nifty 50 index was up 0.41% to 17,469.55 as of 9:38 a.m. IST. The S&P BSE Sensex rose 0.44% to 59,376.83.
Eight of the 13 major sector indices rose with nearly 1% gains in the high-weight financial sector. Bajaj Finance rose more than 3% and was among the top of the Nifty 50 risers after new loans posted in the March quarter grew 20% year over year.
Index heavyweight HDFC Bank rose more than 1.5% after the company reported a 20.8% year-on-year increase in deposits to Rs 18.84 trillion on March 31.
Upstream oil companies rallied after the government cut taxes on crude oil to zero and halved those on diesel.
Analysts await the Reserve Bank of India’s rate decision on Thursday. According to a Reuters poll of economists, the RBI is likely to raise rates by 25 basis points on Thursday and then pause for the rest of the year.
The central bank raised the repo rate by 250 basis points to 6.50% last financial year.
Global equities remained subdued after data showed US job openings fell to a nearly two-year low in February.
The cooling of the labor market, a crucial aspect of inflation control, also greatly increased the likelihood that the Federal Reserve would stop raising interest rates in May.
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