In the February meeting, the bank's Monetary Policy Committee had voted for a pause in the monetary policy with the exception of RBI executive director Michael Patra who voted for a 25 basis points hike. That said, all eyes are now on the RBI policy decision due later in the day, with many economists expecting the central bank to keep the repo unchanged at 6.00 percent, its lowest level since November 2010, despite increased risks to inflation. The SGX Nifty is pointing that Nifty may open with gains of around 167 points at 10,297. The trend continued when the market opened today and bank stocks kept moving higher and higher as the session progressed.
The dollar index, which measures the United States currency's strength against major currencies, was trading at 90.161, up 0.02% from its previous close of 90.142.
Back home, after a flat start, key benchmark indices were set to continue their jubilant run.
Equities were also buoyed by favourable global trends after the U.S. indicated it was open to negotiations in its trade dispute with China, easing fears of a full-blown trade war.
The NSE Nifty, after shuttling between 10,331.80 and 10,227.45, finally settled 196.75 points, or 1.94 points higher at 10,325.15. Barring Nifty Auto, all other sectoral indices closed in the red. Intra-day, it shuttled between 10,290.85 and 10,350.45. The BSE Sensex closed down 351.56 points or 1.05 percent to 33,019.07. The Nasdaq jumped 1.45% to end at 7,042 and the S&P 500 rose 1.16% to close at 2,645.
"It was a tumultuous day on the bourses as investors were wary of renewed trade war fears between the USA and China, and adopted a note of caution".
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: "For the coming session, the immediate hurdle is placed in the zone of 10187-10230 and on the downside, last Wednesday's low of 10096 would be a crucial support". The FTST 100 of the United Kingdom remained nearly unchanged.