Mumbai Stock Exchange Rises Ahead of Indian Central Bank's Monetary Policy Decision

The BSE Sensex index increased by 149 points or 0.2% to reach 85,256 points in volatile trading on Thursday, ending a four-day losing streak, according to Trading Economics, ahead of the anticipated monetary policy decision from the Reserve Bank of India (RBI) on Friday.

Markets expect the central bank to reduce the repo rate by 25 basis points due to declining inflation rates.

Sentiment also improved with expectations of interest rate cuts by the U.S. Federal Reserve next week.

However, ongoing foreign outflows have led to the rupee dropping to its all-time low, while uncertainties regarding a potential trade deal between the U.S. and India limited gains.

Meanwhile, the Nifty 50 index rose by 0.2% to surpass the 26,000-point mark, with mid-cap stocks increasing by 0.3% and small-cap stocks remaining nearly unchanged.

The technology sector led the gains with a rise of 1.3%, followed by the automobile and metals sectors.

Among the notable early gainers were:

Tata Consultancy Services up 1.4%

HCL Technologies up 1.2%

Tech Mahindra up 1.2%

Asian Paints up 0.8%

Infosys up 0.7%