India shares rise after cenbank eases policy stance to 'neutral'
Updates at 10:28 a.m. IST
By Bharath Rajeswaran
Oct 9 (Reuters) -Indian shares rose on Wednesday, after the central bank kept rates unchanged as expected but eased its policy stance, opening the door for rate cuts.
The Nifty 50 index .NSEI was up 0.52% at 25,143.95 points as of 10:28 a.m. IST, while the S&P BSE Sensex .BSESN added 0.5% to 82,042.50.
Both the benchmarks were up 0.2% ahead of the policy decision.
The Reserve Bank of India (RBI) kept the key policy rates unchanged but changed its policy stance from the hawkish 'withdrawal of accommodation' to 'neutral'.
"The RBI's dovish commentary and change in policy stance is positive for rate-sensitive sectors like banking, real estate and auto," Vinit Bolinjkar, head of research at Ventura Securities said.
The bank index .NSEBANK rose 1%, while financials .NIFTYFIN added 1.25%. Auto .NIFTYAUTO and real estate .NIFTYREAL shares rose 0.6% and 2.1%, respectively.
The central bank's policy stance and commentary "will help the housing market to maintain momentum during the festive season," Anuj Puri, chairman at Anarock Property Consultants said.
Eleven of the 13 major sectors advanced.
The broader, more domestically-focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose 1.4% and 1.2%, respectively.
The pharma index .NIPHARM added 1.3%, led by a 6% rise in Divi's Laboratories DIVI.NS after Citi initiated coverage of the drugmaker's stock with a "buy" rating.
The IT index .NIFTYIT rose 0.7%, extending gains for the fourth session in a row, after labour market data eased concerns of recession in the U.S., a key source of revenue for the sector.
Torrent Power TOPO.NS jumped 7.25% after securing two orders from Maharashtra State Electricity Distribution Company.
Tractors maker Escorts Kubota ESCO.NS rose 3.5% and was the top gainer on the auto index after Emkay Research upgraded it to "buy" from "add", citing a likely upcycle in tractors market in the second half of the fiscal year 2025.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala
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