BSE Sensex edges higher; earnings key as RBI policy review had little impact

Written by Reuters | Mumbai | Updated: Sep 30 2014, 21:26pm hrs
BSE SensexBSE Sensex rose over 90 points late morning trade today after the Reserve Bank kept key interest rate unchanged in its bi-monthly monetary policy. (Reuters)
BSE Sensex edged higher on Tuesday as blue-chips rose on hopes that upcoming earnings and auto sales will show the economy remains on the mend, while RBI's decision to keep interest rate unchanged had little impact.

Although the broader NSE index edged higher for the month, posting its fifth consecutive monthly gain, the benchmark BSE index marked its first monthly fall in eight.

Housing Development Finance Corp provisionally rose 2.2 percent while Maruti Suzuki India ended higher 1.7 percent.

The benchmark BSE index provisionally closed 0.13 percent higher, while the broader NSE index gained 0.07 percent.

After a steep correction for the better part of last few days, the markets experienced severe bouts of volatility. Participants were nervous ahead of long string of holidays going forward. High debt companies were punished & Consumer Durables & Auto stocks were in action on the back of expected rise in demand, as the festive month of October arrives. RBI maintained status quo on the interest rates front, though, Governor Rajan said inflation readings are expected to be better on a better than expected monsoon this year. Midcaps have shown good traction for the past two days & selective buying is advised in good quality businesses which underwent huge correction, said Devang Mehta, Sr. VP & Head - Equity Advisory, Anand Rathi Financial Services.