BSE Sensex up more than 1 pct before RBI move
MUMBAI (Reuters) - Indian shares rose more than 1percent in morning trade on Tuesday on expectations the Reserve Bank of India (RBI) will cut interest rates at a policy review, with sentiment also boosted by gains in most Asian markets.
Top private sector firm Reliance Industries and No. 2 software exporter Infosys Technologies lead gains.
India's central bank reviews monetary policy on Tuesday, with analysts slightly favouring a cut in the key lending rate following a hefty U.S. rate cut last week.
Seven of 13 analysts polled by Reuters expect a 25 basis point cut in the repo rate to 7.50 percent. The announcement is due at noon.
At 10:33 a.m., the 30-share BSE index was up 1.13 percent, or 205.9 points, at 18,358.64, with all but four of the components rising.
It rose as much as 1.86 percent earlier in the session.
The index had recovered from an intra-day fall of 5 percent to end 1.1 percent down on Monday as banks and auto shares were boosted by rate cut expectations.
If the central bank decides to cut the repo, its lending rate to banks, it would be the first such move in nearly four years.
The central bank said on Monday that inflation risks from high international oil and food prices continued, which some analysts interpreted as a sign rates would be held steady. Continued...
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