Markets open on cautious note ahead of RBI policy

Mumbai: Stock markets opened on a cautious note on Thursday as the Reserve Bank of India (RBI) prepared to announce its decision on repo rate.

At 11:15 am, the BSE Sensex was up 117 points at 37,092 while the Nifty 50 was 29 points higher at 11,991.

Sun Pharma moved up 4.4 per cent in early trading while Bajaj Auto was up 3.2 per cent. Other gainers included Zee Entertainment and Tata Motors.

Gains in Reliance Industries Ltd and IT stocks have boosted markets this week.

However, those which lost ground were JSW Steel, Tech Mahindra, GAIL, Adani Ports and HDFC.

Traders said the RBI is expected to shift its policy stance from ‘calibrated tightening’ to ‘neutral’ and move towards a rate cut in April. It is the first meeting being held under the leadership of Shaktikanta Das.

The government wants interest rates to be cut so that lending to the industry can get a boost ahead of the general elections due in April.

Meanwhile, Asian stock markets were trading on a mixed note as investors began to return from their Lunar New Year break.