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Markets retain morning gains, Nifty holds 8,800; realty index up 3%

The market breadth remained strong as more than two shares advanced for every share falling on BSE

Photo: shutterstock
<b> Photo: shutterstock <b/>
Pranati Deva New Delhi
Last Updated : Feb 06 2017 | 2:21 PM IST
Benchmark indices retained morning gains to continue trading at 4-month high as investors bet RBI will cut interest rates in their policy review meet later this week.
 
Most of the 17 economists polled by Business Standard were hesitant to give a clear call on the possible policy outcome. While six economists expected RBI to pause on Wednesday, 11 said the chances of RBI cutting rates by 25 basis points (bps) were a bit on the higher side.
 
Nifty50 reclaimed its 8,800 level for the first time since October 5, and continued trading above it during the afternoon trade led by gains in banking, realty, cement, pharma and FMCG stocks.
 
At 2:21 pm, the S&P BSE Sensex was trading at 28,464, up 224 points, while the broader Nifty50 was ruling at 8,803, up 63 points.
 
The positive sentiment lifted Nifty Midcap and Smallcap indices higher by 1% to their respective record highs.
 
The market breadth remained strong as more than two shares advanced for every share falling on BSE.
 
BSE Realty index (up 3%) was the top sectoral gainer, extending gains for the fourth consecutive sessions after finance minister Arun Jaitley accorded infrastructure status to affordable housing in Budget 2017 to encourage investment in the segment and offered tax sops for developers sitting on completed unsold inventories.
 
Banking stocks also rose over 1% with ICICI Bank and IndusInd Bank rising as much as 3.06% and 1.29%, respectively on rate cut hopes.
 
Lupin gained over 4% after it received final approval from USFDA for its generic drug Triamcinolone Acetonide Cream which provides relief to the inflammatory and pruritic manifestations of corticosteroid responsive dermatoses.

Nifty IT was the only sectoral index trading in red on uncertainty over Trump's visa policies dragged by HCL Tech and Tech Mahindra. 
 
Among the losers, Dr. Reddy's Laboratories Ltd fell as much as 3.14% during intra-day after the company reported a 16% drop in its consolidated net profit for the December quarter.
 
Meanwhile, Asian shares were mostly higher on Monday as Wall Street gathered momentum into a busy week of earnings with more than 100 major companies due to report, while the dollar was again hobbled by a lack of progress on US fiscal stimulus.
 
MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.4%, with Taiwan leading the pack by adding 0.9%.
 
Japan's Nikkei rose 0.2% in the wake of a firmer finish on Wall Street. Japanese Prime Minister Shinzo Abe meets US President Donald Trump on February 10 and 11, with trade and currencies likely to be on the agenda.