Indian shares open higher ahead of cenbank decision
Updates at 9:15 a.m. IST
Oct 9 (Reuters) -Indian shares opened higher on Wednesday ahead ofthe Reserve Bank of India's policy meeting, at which the central bank is expected to stand pat on interest rates.
The Nifty 50 index .NSEI was up 0.21% at 25,065.8 points as of 9:15 a.m. IST, while the S&P BSE Sensex .BSESN added 0.39% to 81,954.58.
The RBI is expected to keep key policy rates unchanged for a tenth consecutive meeting amidinflationary pressures, but the central bank's hawkish 'withdrawal of accommodation' policy stance and comments will be under scrutiny.
The RBI's policy decision is due at 10:00 a.m. IST.
Inflation risks in India have been compounded by the recent escalation in the conflict in the Middle East, which has pushed up crude prices, analysts at JP Morgan said in a note.
Any dovish commentary on the economy or rates will aid momentum in domestic equities, especially in rate-sensitive sectors such as real estate, auto and banking, analysts said.
India's benchmark indexes Nifty 50 and S&P BSE Sensex .BSESN snapped a six-session losing streak on Tuesday, as investors bought the dip, while better-than-expected results for the ruling party in a state assembly election also supported sentiment.
Other Asian markets opened higher with the MSCI Asia ex-Japan index .MIAPJ0000PUS rising 0.7%. Wall Street equities settled higher overnight. MKTS/GLOB
On the day, twelve of the 13 major sectors advanced. The broader, more domestically-focussed small- .NIFSMP100 and mid-caps .NIFMDCP100 gained about 0.6% each.
Among individual stocks, Torrent Power TOPO.NS jumped 4.6% after securing two orders from Maharashtra State Electricity Distribution Company Ltd for buildinga total of 2000 MW energy storage capacity.
Employment services provider Aarvi Encon AARI.NS climbed 20% on winning an order worth 1.73 billion rupees ($20.6 million).
($1 = 83.9300 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng
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