The markets closed slightly higher on Monday, ahead of the RBI’s policy decision on Tuesday. The Sensex ended up 74 points to 14,349, led by gains in oil & gas and capital goods sectors. The broader Nifty closed higher by 20 points to 4,332 levels.
The indices opened lower on Monday, with the serial blasts in Bangalore and Ahmedabad casting a shadow over the markets. And during the day, the markets kept moving in and out of the green zone.
Analysts expect a 25 bps hike in key rates from RBI, but markets have already “factored in the increase”, said Sandeep Shenoy, head of equities at PINC Research. “I don’t expect markets to react to the RBI’s rate hike move tomorrow,” he added.The market breath was strong on Monday, with only three out of 12 sectoral indices on the BSE closing in the red.
Oil & gas and capital goods sectors were among the major sectoral gainers, up about 1.5 per cent each. Metals were the biggest loser, followed by IT and banking. The capital goods index was boosted by L&T, which reported strong quarterly numbers. The stock was also the biggest gainer among the Sensex stocks, up 3.75 per cent to Rs 2,723.
Tata Power, a new entrant to the Sensex list, had a good debut, up 3.61 per cent to Rs 1,051.The other major gainers were ACC, ONGC and Ranbaxy.With nearly three-fourth of the earnings numbers out, the markets are in a state of equilibrium, said Shenoy.
“The Q2 numbers are going to be important and 4600-4700 levels can be reached before correction sets in, unless some major setbacks happen, he added. Asian markets had a mixed day, with Jakarta, Shangai Composite closing in the green, while Hong Kong and Taiwan ending in the red.