BSE Sensex extends gains; lenders, tech shares lead

Reuters Market Eye - The BSE Sensex gains 1.41 percent, while the broader Nifty is up 1.37 percent, trading above the 6,000 level for the first time since February 4.

Mortgage lender Housing Development Finance Corp Ltd gains 2.3 percent, while State Bank of India Ltd is up 2 percent on expectations of monetary easing.

The Reserve Bank of India may sweeten its expected 25 basis point interest rate cut on Friday with a similar reduction in the cash reserve ratio to ease tight market liquidity conditions as increasingly benign inflation gives it room to manoeuvre.

Shares in Tata Consultancy Services Ltd gain 3.7 percent on short covering in May futures, triggered by value buying in the cash market after April's underperformance, dealers say.

 

Among other IT stocks, Infosys Ltd is up 2.2 percent while HCL Technologies gains 1.3 percent.

However, NSE's volatility index, or India VIX, is rising at a time when the Nifty crossed the psychologically important 6,000 level, the first time since February 4, keeping many wary of profit-taking on policy day, dealers said.

(Report by Abhishek Vishnoi)