Market moves with caution, RBI rate call takes centre-stage

Mumbai: Stock market picked more gains on, setting its sights firmly on the Reserve Bank of India’s policy announcement later in the day.

While the Sensex advanced 171 points powered by healthcare, energy and FMCG indices, the broader Nifty went above the key 9,900.

Caution prevailed amid expectations that the central bank would keep rates unchanged. Risk-averse sentiment received a boost from a stronger rupee and higher Asian cues.

The BSE Sensex traded at 31,668.74 at 1141 hours, up 171.36 points, or 0.54 per cent. The NSE Nifty hit 9,914.05, gaining 54.55 points, or 0.55 per cent.

Major stocks that rose include Sun Pharma, PowerGrid, Dr Reddy’s and RIL, jumping up to 3.47 per cent. Most Asian markets ruled higher. Markets in China, South Korea and Taiwan were closed for a holiday.

In the US, key indices on Wall Street closed at record levels yesterday driven by recovery in manufacturing and expectations of strong global growth.

Share outflow from foreign portfolio investors (FPIs) continued at net worth Rs 693.03 crore on Tuesday, showed provisional data from exchanges. Domestic institutional investors (DIIs) bought shares net Rs 1,552.41 crore.