MUMBAI: Indian shares closed higher for a fourth straight session on Wednesday as financials climbed on growing expectations of a likely cut in the cash reserve ratio by the central bank while a pullback in Reliance Industries and autos capped gains.
The NSE Nifty 50 rose 0.04% to 24,467.45, while the BSE Sensex added 0.14% to 80,956.33.
Seven of the 13 major sectors advanced. The broader, more domestically focussed small- and midcaps added about 1% each.
High-weightage financials gained 1.1%, led by a 1.85% rise in top-weighted HDFC Bank. State-owned lenders advanced 2.25%.
Analysts have pointed to the growing possibility of the Reserve Bank of India lowering the CRR – the amount of cash reserves that banks are required to maintain with the RBI – to 4% from 4.5%.
Lower reserves will mean the banks have more money to lend, helping improve liquidity in the economy.
The RBI is also expected to hold rates steady at its policy meeting on Friday due to elevated inflation, but its commentary will likely be pivotal for markets following a sharp growth slowdown in the September quarter.
Meanwhile, Reliance Industries – the second heaviest stock in Nifty 50 – fell 1.1%, dragging energy index 0.7% lower.
Source: Brecorder
