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Sensex Trims Gains As Infosys, Maruti Suzuki Slip; Nifty Hovers At 12,000

Sensex Trims Gains As Infosys, Maruti Suzuki Slip; Nifty Hovers At 12,000

Analysts awaited outcome of Reserve Bank of India’s bi-monthly policy review meeting due on Thursday,

Domestic stock markets have trimmed their early-morning gains as buying interest in select heavyweights such as Reliance Industries, ICICI Bank and TCS was offset by losses on the Infosys, Maruti Suzuki and SBI counters. At 12:15 pm, the Sensex was quoting at 40,824, higher by 42 points and the Nifty was at 12,000, up 23 points. The broader markets were out-performing the benchmark indices, with the BSE Midcap index gaining 0.9 per cent at 15,644 and the BSE Smallcap index adding 0.4 per cent at 14,613.

The Sensex, which had recouped all its Budget-day losses in the previous session, had risen by another 250 points approximately to touch an intra-day high of 41,023 this morning and the Nifty had also touched 12,049. The markets have, however, trimmed their gains this afternoon.

The rupee opened 6 paise higher at 71.21 against the US dollar on Wednesday as the sentiment improved across global markets amid efforts to contain deadly coronavirus. The rupee had moved higher by more than 10 paise against the greenback on Tuesday. The slide in Brent prices and foreign fund inflows into domestic equities supported the rupee further.

Analysts awaited the outcome of the Reserve Bank of India’s bi-monthly policy review meeting due on Thursday, February 6. The central bank is widely expected to maintain its “accommodative” policy stance as inflation remains above its comfort zone.

The central bank’s monetary policy committee (MPC) had cut the rates by 135 basis points over five straight meetings last year, before surprising markets in December by holding the policy repo steady at 5.15 per cent due to growing concerns over inflation.