Home Economy Ahead of monetary policy, Sensex in green

Ahead of monetary policy, Sensex in green

By IANS,

Mumbai : Ahead of the annual policy statement by India’s central bank, a key equities index Tuesday started trade in the green and was ruling about 58 points higher than its previous close about 90 minutes into trade.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,394.68 points, was ruling at 17,459.11 points, up 58.43 points or 0.34 percent from its previous close at 17,400.68 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was at 5,229.35 points against the previous close at 5,203.5 points, a gain of 0.49 percent.

Buying interest was prevalent in broader markets as well, with the BSE midcap index ruling 0.9 percent higher and the BSE small cap index ruling 1.37 percent up.

The Reserve Bank of India is expected to hike key interest rates when it presents its annual monetary policy for 2010-11 Tuesday. It gave a clear indication to this effect in a key document released Monday evening.

The RBI, which has been facing a classical dilemma of whether to keep the momentum of growth or to rein in inflation, said it was time that high inflation was tackled.