The BSE benchmark Sensex today rose over 41 points in early trade on sustained buying by participants on hopes Reserve Bank of India will cut interest rate tomorrow and better-than-expected corporate earnings.

The 30-share barometer, which had gained 179.75 points in the previous session on Friday, rose by 41.10 points, or 0.20 per cent, to 20,144.63, with realty, banking and auto sector stocks leading the rise. Similarly, the wide-based National Stock Exchange index Nifty gained 9.40 points, or 0.15 per cent, to 6,084.05.

Brokers said increased buying by funds on hopes that the RBI may announce a rate cut in its monetary policy review tomorrow, influenced the trading sentiments. Besides, better-than-expected quarterly earnings by Maruti and Reliance Power and a firming trend in the Asian region also had a positive impact, they said.

Meanwhile, in Asia, Japan’s Nikkei was up by 0.70 percent, while Hong Kong’s Hang Seng gained 0.35 per cent.The US Dow Jones Industrial Average ended 0.51 per cent higher on Friday. Nifty futures on the Singapore Exchange rose 0.1 percent. The MSCI-Asia Pacific index, excluding Japan was down 0.13 percent.

South Korean shares were hit by earnings worries, dragging down the broader Asian share index, but improving economic prospects in Europe and solid U.S. earnings underpinned sentiment.

The Standard & Poor’s 500 index closed above 1,500 for the first time in more than five years on Friday as strong U.S. earnings reports helped the benchmark extend its rally to eight days.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 20,103.53 (+0.90 pct)
* NSE index 6,074.65 (+0.92 pct)
* Rupee 53.68/69 per dollar (53.665/675)
* 10-year bond yield 7.88 pct (7.86 pct)
* 5-year OIS rate 7.14 pct (7.14 pct)
* 1-year OIS rate 7.56 pct (7.55 pct)
* Call money 8.00/8.05 pct (8.00/8.10 pct)

The Reserve Bank of India will release its macro-economic review for Oct-Dec quarter a day before its quarterly monetary policy review. The report serves as a curtain raiser to the policy. Report due to be published at 1130 GMT.

India’s plan to raise about $2 billion selling a stake in power producer NTPC Ltd will likely take place on Feb. 7, three sources with direct knowledge of the situation said on Friday. The Reserve Bank of India tightened the rules of offering differential interest rates on large size term deposits and also said banks can stop large depositors from premature withdrawal of their money.

India’s Coromandel International said it has signed a definitive agreement to buy a controlling stake in fertiliser maker Liberty Phosphate Ltd and two of its affiliates for up to 3.75 billion rupees ($69.84 million) to strengthen its soil nutrients business.

Tata Communications launched its debut Singapore dollar-denominated bond on Thursday. The S$250m three-year deal is the second public issue by an Indian corporate in the Singapore market but the fifth borrowing from an Indian issuer so far.