Nifty, Sensex edge higher tracking broader Asia

Reuters Bengaluru, India Jul 30, 2019, 10.32 AM(IST)

File photo. Photograph:( Zee News Network )

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The broader NSE Nifty was up 0.32 per cent at 11,224.85 as of 0455 GMT, while the benchmark BSE Sensex rose 0.31per cent to 37,803.38.

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve.

The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.

The broader NSE Nifty was up 0.32 per cent at 11,224.85 as of 0455 GMT, while the benchmark BSE Sensex rose 0.31per cent to 37,803.38.

"The positive open follows mildly positive US markets on Monday and largely positive Asian markets this morning," said Deepak Jasani, senior vice president at HDFC Securities.

"Some beaten-down stocks of Monday are seeing some bounce."

Banks and financials led the gains, with the Nifty Bank index and the Nifty Finance index rising 0.5 per cent each. ICICI Bank was among the top gainers with a rise of 1.2 per cent.

State Bank of India, the country's biggest lender, tightened lending terms for auto dealers as it sought to reduce its exposure to the crisis-ridden sector, Reuters reported on Monday.

The move, however, did not dampen investor sentiment on the sector. The Nifty Auto index was up 0.4 per cent, after it touched an over three-year low on Monday.

Sector heavyweights Maruti Suzuki and Tata Motors were up 0.5 per cent and 0.8 per cent, respectively.

Dr Reddy's Laboratories, which reported better-than-expected earnings on Monday, saw its stock rise slightly over 1 per cent. Cipla Ltd was up nearly 2 per cent.

Among losers, Indiabulls Housing Finance Ltd extended its fall from Monday after a lawmaker alleged embezzlement by the company to the tune of 1 trillion rupees.

Meanwhile, shares of Coffee Day Enterprises Ltd plunged 20 per cent, after the founder and largest shareholder in the company went missing under mysterious circumstances on Monday.