Nifty, Sensex rise ahead of RBI interest rate decision

Indian shares clocked broad-based gains on Thursday ahead of a bi-monthly monetary policy decision by the country's central bank, with financial and IT stocks leading gains.

The NSE Nifty 50 index climbed 0.52% to 11,159.45 by 0350 GMT and the S&P BSE Sensex was 0.50% higher at 37,846.10.

All 11 major sectoral indexes were trading higher. The Nifty finance index was up 0.73% and the Nifty IT index 0.85%.

Around two-thirds of economists polled by Reuters expect the Reserve Bank of India (RBI) to cut the repo rate, the rate at which it lends overnight funds to banks, by another 25 basis points despite rising inflation, as a surge in coronavirus cases worsen the economic outlook.

Investors will also watch if the RBI decides to extend a moratorium on loan repayments to banks, which analysts have said could worsen asset quality of lenders.

The Nifty banking index was last up 0.4%.