Sensex climbs over 110 points ahead of RBI policy outcome; Nifty tests 17,500

Mumbai: Equity benchmark Sensex gained over 110 points in opening trade on Thursday, tracking gains in index majors Infosys, HDFC twins and Tata Steel ahead of the RBI's monetary policy decision.

The BSE gauge was trading 111.34 points or 0.19 per cent higher at 58,577.31 in early trade. Likewise, the Nifty advanced 34 points or 0.19 per cent to 17,497.80.

PowerGrid was the top gainer in the Sensex pack, climbing nearly 2 per cent, followed by Infosys, Tata Steel, HDFC Bank, Sun Pharma, HDFC and NTPC.

On the other hand, Maruti, Asian Paints, Bajaj Finserv and Bharti Airtel were among the losers.

In the previous session, the 30-share index surged 657.39 points or 1.14 per cent to finish at 58,465.97. Similarly, the NSE Nifty jumped 197.05 points or 1.14 per cent to 17,463.80.

"The rate-setting panel of the RBI is widely expected to increase the reverse repo rate or the rate at which the central bank borrows short-term deposits from banks by at least 25 basis points. Along with this, the MPC is likely to change the policy stance to neutral from accommodative," Deepak Jasani, Head of Retail Research, HDFC Securities, said.

Elsewhere in Asia, bourses in Seoul and Tokyo were trading with gains in mid-session deals, while Hong Kong and Shanghai were in the red.

Stock exchanges in the US closed in the positive territory in the overnight session.

Meanwhile, international oil benchmark Brent crude slipped 0.17 per cent to USD 91.39 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 892.64 crore on Wednesday, according to stock exchange data.