Sensex up nearly 0.5%, Nifty above 8,700 ahead of RBI policy meet

Market benchmark Sensex rose almost 137 points and the NSE Nifty retook the 8,700-mark on Monday morning on optimistic buying by participants ahead of RBI policy review on Tuesday amid increased foreign capital inflows. 

Firm Asian cues tracking record closing in the US after strong employment numbers released on Friday bolstered sentiment. 

Rising for the third straight day, the 30-share index advanced 136.83 points, or 0.48%, to 28,215.18, with oil and gas, metal, auto, FMCG, banking and PSU stocks leading the gainers' brigade. 

The gauge had gained 380.84 points in the previous two sessions. 

The NSE Nifty also perked up 38.05 points, or 0.43 per cent, to 8,721.20. 

Brokers said widening of bets by investors and funds ahead of RBI's bi-monthly monetary policy review due tomorrow and continued foreign fund inflows added to the positive mood. Hero MotoCorp was trading higher by 0.83% at Rs 3,462.90 ahead of its quarterly earnings, to be released later in the day today. 

Among other Asian markets, Hong Kong's Hang Seng was up 1.21% while Japan's Nikkei surged 1.99% in early trade today. Shanghai Composite too rose 0.27%. 

The US Dow Jones Industrial Average ended 1.04% higher on Friday.