New Delhi: The markets closed marginally higher with the benchmark index moving up 74 points to 14,349 levels by close. It was a choppy session as banking stocks turned volatile ahead of a policy review by India’s central bank, with rates expected to be hiked.
“There could be some nervousness in the markets as there is apprehension of interest rate hike and CRR hike when RBI releases its quarterly monetary policy tomorrow,” said a technical analyst with Religare Securities.
“I expect some consolidation is likely to take place before the next move,” he added.
Last Thursday, India’s inflation slowed marginally to a lower-than-expected 11.89% for the week ended 12 July, still way above the RBI’s declared comfort level of 5%.
Economists expect the RBI to hike the repo rate by 25 basis points to 8.75% and the cash reserve requirement by 25 basis points to 9%.
Trading sentiment was subdued at the Mumbai stock exchange on Monday amid high security across the city, after last week’s terror attacks in high-technology capital Bangalore and the western city of Ahmedabad.
At the bourses, leading the pack of gainers were ACC, Tata Power and ONGC. They moved up over 3% by close of trading session. Larsen and Toubro also firmed up 3.7% to Rs2,723 levels on the back of 33% jump in its Q1FY09 net profit to Rs502 crore.
DLF Limited, Reliance Industries, TCS Limited, Ranbaxy Laboratories and ICICI Bank were some of the other notable gainers in the BSE-30 pack.
(with AFP inputs)