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The central bank is likely to cut rates by 0.25% in its monetary policy review on May 3, driven by falling inflation levels and recent declines in the prices of oil, gold, and the trade deficit, according to a Barclays report.
At 10:10AM, the Bombay Stock Exchange's 30-share index Sensex rose 71 points at 19,361.67 while the National Stock Exchange's 50-share Nifty gained 20 points at 5,892.60.
Global risk appetite was frail on concerns over growth recovery in Asia after weak set of economic data from US and Eurozone.
Among the key Asian indices, Hong Kong’s Hang Seng gained 0.1 % to 22,568 while Singapore’s Straits Times rose 0.1% at 3,352.69 in the opening deals. Markets in China and Japan are closed today for a holiday.
On Friday, US stocks dropped after weak gross domestic product report but closed on a flat note on account of bargain-hunting by traders.
Investors are now focussed on the U.S. Federal Reserve will start a two-day policy meeting tomorrow after a government report last week showed the world’s largest economy expanded less than economists’ forecast.
Back home, the key sectoral indices such as IT, auto, technology, power, real-estate and capital goods gained while metal sector declined on the BSE.
The gainers on the Sensex included, Hero MotoCorp gaining 4.8%, Bajaj Auto and Maruti Suzuki rose 2% and 1.2%, Infosys and TCS added 1% each on the BSE.
The laggards included counters such as Jindal Steel and Hindalco Industries dropping 3% and 1% respectively, HUL fell 1% while HDFC shed 0.2% on the BSE.
The key notable movers included counters such as, Hexaware Technologies which is trading higher by 3% at Rs 85.30 in early morning deals on BSE after reporting a 20% quarter-on-quarter (q-o-q) jump in its consolidated net profit at Rs 79.28 crore for the quarter ended March due to lower operating expenses and foreign exchange gain of Rs 2.25 crore.
Hero MotCorp, surged nearly 5% after India's largest motorcycle manufacturer, posted upbeat January-March profit.
Denso India has hit the upper circuit of 5% of Rs 55.50 on the Bombay Stock Exchange (BSE), after its board approved the delisting of equity shares of the company from the stock exchanges.
The broader markets gained mid-caps and small-caps rising 0.3-0.4% on the BSE.
The market breadth was positive. Out of 1,290 stocks traded, 792 stocks advanced compared to 446 declines on BSE.
