April 2, 2019 / 6:33 AM / 3 months ago

Indian shares rise tracking broader Asia; all eyes on cenbank meeting

* NSE index up 0.19 pct, BSE index 0.25 pct higher

* Power companies gain after court relief on RBI diktat

* Cyient posts biggest intra-day loss in over 2 yrs

By Arnab Paul and Gaurav Dogra

April 2 (Reuters) - Indian shares inched higher for a fourth straight session on Tuesday in line with gains in broader Asia supported by strong global cues, as investors turned their focus to a key three-day central bank meeting beginning later in the day.

The Reserve Bank of India (RBI) is expected to cut its benchmark lending rate for a second consecutive time when its meeting ends on Thursday, shortly before the first phase of the national election, a Reuters poll found.

More than 85 percent of nearly 70 economists polled forecast the RBI would cut its repo rate to 6.00 percent on April 4. The consensus showed the central bank would then keep rates on hold through to the middle of next year at least.

Domestic shares also tracked broader Asian markets which continued to rally on the back of positive U.S. and Chinese manufacturing data.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent.

The broader NSE index was up 0.19 percent at 11,691.55 as of 0623 GMT, while the benchmark BSE index was 0.25 percent higher at 38,968.97.

Technically, both the NSE and BSE indexes were expected to face resistance near the August 2018 high of 38,990. Though the benchmark BSE index breached that level on Monday, it couldn’t break the resistance as it closed below the August high.

The price action formed a shooting star candle carrying a long upper shadow with a positive gap, indicating profit booking in the vicinity of the life-time high, ICICI direct research said in a note.

“Going ahead, we expect the Nifty to consolidate in the broader range of 11,800–11,400,” the note added.

Eicher Motors Ltd gained 3.2 percent and was among the top percentage gainers on the NSE index. The company appointed here Vinod K Dasari as the chief executive officer of motorcycle making unit Royal Enfield.

Power companies Power Grid Corp of India and Adani Power Ltd rose over 2.5 percent each after the Supreme Court dismissed an RBI circular that gave firms 180 days for debt resolution, failing which the issue would be taken under the country’s bankruptcy laws.

Bharat Road Network Ltd hit its upper circuit limit of 20 percent after winning an arbitration award aganst NHAI.

Index heavyweight Reliance Industries Ltd was among the top drags, falling 0.7 percent after gaining about 3.2 percent in the previous three sessions.

Zee Entertainment Enterprises Ltd fell as much as 4.1 percent to its lowest since February 14.

Software engineering firm Cyient Ltd slumped 10 percent to its biggest intraday loss in over two years after it said it expects a decline in design led manufacturing revenue during fourth quarter of fiscal 2019.

Reporting By Arnab Paul and Gaurav Dogra in Bengaluru; Editing by Rashmi Aich

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