India : Market at new 52-week high; Nifty above 8700 ahead of RBI policy
MUMBAI : Equity benchmarks extended upside for the second consecutive session on Monday, closing at fresh 52-week high on consistent inflow of foreign money, and positive global cues after US payroll data. Overall it was a consolidation today as investors turned cautious ahead of RBI monetary policy.The 30-share BSE Sensex was up 104.22 points at 28,182.57 and the 50-share NSE Nifty gained 28.20 points at 8,711.35. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.7-1 percent due to liquidity.
Consistent inflow of foreign money has been driving the market higher since the beginning of March. FIIs have been net buyers for the six consecutive month, pumping in more than Rs 2,500 crore in August so far (till last week), in addition to Rs 46,158.76 crore worth of buying between March-July.
Majority of experts expect the status quo in RBI monetary policy on Tuesday but the commentary by Governor Raghuram Rajan will be key to watch out for, especially after better monsoon that will decide the inflation trend projections.
“Nifty’s close above 8700 was suggestive that rate cut prospects in the next policy meeting is also being priced especially, with the government notifying an inflation target of 4 percent midpoint, which is in line with RBI’s figures,” Anand James of Geojit BNP Paribas Financial Services said.
About 1544 shares advanced against 1215 declining shares on the BSE.
