Sensex up 200 points ahead of MPC decision
Mumbai, Oct 4 (IANS) The benchmark Sensex was trading over 200 points higher ahead of the Reserve Bank of India (RBI’s) fourth bi-monthly monetary policy decision.At 10.36 a.m., the Sensex was up 201.44 points at 38,308.31 from its previous close of 38,106.87.
It opened at 38,401.49.The broader Nifty was also up 46.10 points at 11,360.10.Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities said with inflation remaining within its comfort range, despite recent onion price increases, revisions to its growth forecast warrant a sharper-than-usual rate cut in the October policy
.”We pencil in a 40 bps of rate cut which should be a signal to the market that the MPC is not quite done as it frontloads the remaining couple of rate cuts in the cycle,” Rakshit added.The Reserve Bank of India had announced a 35 basis points rate cut as against a conventional 25 during its last MPC review meet.