Mumbai: The BSE Sensex stayed higher for the fourth consecutive session on Wednesday, tracking positive global cues. Bank stocks spiked in late trade ahead of Reserve Bank of India's monetary policy review on Thursday (March 15).
The 30-share BSE Sensex rose 105.68 points or 0.59 per cent, to close at 17,919.30 after hitting an intraday high of 18,040.69. Meanwhile, the 50-share NSE Nifty went up 34.40 points or 0.63 per cent to 5,463.90.
Bond 8.79 per cent 2021 yield spiked to 8.36 in opening trade on Wednesday, but that slipped sharply to 8.29 in afternoon trade. Even fall in core inflation (non-food manufacturing) may be another indication for rate cut; WPI manufacturing products inflation dropped at 5.75 per cent in February versus 6.49 per cent in January while WPI inflation increased at 6.95 per cent from 6.55 per cent during the same period.
Majority of experts said there would be no rate cut, but Nitin Jain, MD & Co-Head, Fixed Income, Nomura India feels the components of today's inflation actually provide a larger opportunity for RBI to cut rates on Thursday. He quickly, however, said the case can be made either way. According to him, if it happens, then quantum will certainly be 25 basis points.
Overall the Railway Budget 2012-13 became a non-event for the market. Railway Minister presented his first Rail Budget and put more focus on safety standards and modernisation of railway, though he hiked fares by 9-16 per cent. He insisted that the railway should get 10 per cent of total govt's infrastructure funds, but the company related to the railway is more worried about implementation of these projects announced by Rail Ministry on Wednesday.
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