By Bharath Rajeswaran
(Reuters) -Indian shares advanced on Wednesday, with investors anticipating dovish signals from the Reserve Bank of India’s policy decision to counter risks from U.S. tariffs and H-1B visa fee hike, even as they expect it to hold rates steady.
The Nifty 50 was up 0.21% at 24,661.45 and the BSE Sensex added 0.18% to 80,419.87, as of 9:34 a.m. IST.
All 16 major sectors logged gains. The broader small-caps and mid-caps rose 0.3% and 0.5%, respectively.
The RBI’s monetary policy decision is due at 10:00 a.m. IST, with nearly three-quarters of economists in a Reuters poll expecting rates to remain unchanged.
However, analysts expect it to be a close call “since inflation is expected to remain benign going forward and lack of a trade deal with the U.S. increases external headwinds to growth,” said analysts led by Sajjid Chinoy of J.P.Morgan.
A rate cut would lower borrowing costs, lift consumption, and bolster corporate earnings, providing a boost to domestic equities.
The central bank held rates steady at its August meeting, following its surprise, front-loaded 50-basis-point rate cut in June.
“Domestic interest-rate sensitive sectors, including banking, financials, realty and auto, will be in focus, tracking the RBI commentary and policy announcements,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
Auto stocks gained 0.6%, led by a 1.5% rise in Bajaj Auto after it posted a 9% year-on-year rise in total sales in September.
The pharma index climbed 1.1%, led by a 3% jump in Lupin. The company received the U.S. drug regulator’s approval for a drug to treat thrombosis and pulmonary embolism.
The rate-sensitive realty index gained 1%.
Among individual stocks, Pfizer climbed 4%, after its U.S.-listed parent Pfizer and President Donald Trump agreed a deal in which the drugmaker will lower prescription drug prices in exchange for tariff relief.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)
