Indian shares were set for a fourth winning session on Wednesday as oil firms such as Reliance Industries gained due to a tax cut on petrol and diesel, though caution lingered ahead of the outcome of the central bank’s policy meeting.
The Reserve Bank of India is widely expected to hold its policy repo rate at 6.00 percent, despite a sharp slowdown in economic growth, after inflation surged to a five-month high, threatening its target.
Though the monetary policy committee is under pressure to ease rates, the inflation outlook for the months ahead and a host of developments since the August review will stay their hand, DBS said in a note to clients.
The broader NSE Nifty was up 0.54 percent at 9,912.40 as of 0552 GMT, while the benchmark BSE Sensex was 0.50 percent higher at 31,656.23.
Oil marketing companies such as Indian Oil Corp Ltd and Hindustan Petroleum Corp Ltd rose over 3 percent each after the government cut excise duty on petrol and diesel by two rupees a litre.
Reliance Industries Ltd rose as much as 1.8 percent.
Meanwhile, Natco Pharma Ltd surged as much as 20 percent to hit its upper circuit limit after its U.S. marketing partner Mylan NV got FDA approval for its generic multiple sclerosis treatment.
Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Sunil Nair