Indian markets rallied today ahead of the RBI’s credit policy tomorrow.

Market watchers and bankers expect the Reserve Bank of India to cut the cash reserve ratio by 50 basis points to revive growth amid slowdown concerns.

According to market watchers, the buoyed sentiment was owing to renewed optimism following the recent fall in commodity prices and more or less positive earnings posted by corporates contrary to expectations before the start of earnings season.

The 30-share BSE index Sensex was up 231.59 points (1.19 per cent) at 19,735.77 and the 50-share NSE index Nifty was up 69.15 points (1.17 per cent) at 5,999.35.

All BSE sectoral indices ended in the green. Among them, IT and TECk stocks rallied the most by over 2 per cent each, followed by capital goods 1.59 per cent and realty 1.48 per cent.

Among 30-share Sensex, M&M, TCS, L&T, Infosys and HDFC were the top five gainers, while Hero Motocorp, HUL, Hindalco, GAIL and Bajaj Auto were the top five losers.

Foreign Institutional Investors (FIIs) bought shares worth Rs 876.93 crore on Tuesday as per provisional data from the stock exchanges.

Asian shares were down tracking overnight cues from the Wall Street as US stocks tumbled on weak employment and manufacturing data.

Most European stocks declined as iInvestors remained cautious ahead of the European Central Bank meeting later today that could see interest rate cut to support growth.

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Published on May 2, 2013