The BSE benchmark Sensex recovered by over 85 points in early trade today on buying by funds and retailers ahead of RBI policy review amid a mixed Asian trend.

The 30-share barometer, which had lost 133.29 points in the previous session on Friday, recovered by 85.15 points, or 0.46 per cent, to 18,710.50 within the first five minutes of trade.

The recovery was led by oil and gas, auto and banking sectors stocks. Similarly, the wide-based National Stock Exchange index Nifty moved up by 22.00 points, or 0.39 per cent, to 5,686.30.

Brokers said buying in interest sensitive stocks by funds and retail investors on expectations of a rate cut by the Reserve Bank of India in its policy review tomorrow and a mixed trend in Asian region influenced the trading sentiment here.

Meanwhile, in Asia, Japan’s Nikkei was up by 0.24 per cent, while Hong Kong’s Hang Seng shed 0.49 per cent in early trade today. The US Dow Jones Industrial Average ended 0.03 per cent higher in the previous session.

GLOBAL MARKETS ROUND UP

Nifty futures on the Singapore Exchange rose 0.25 percent. The MSCI-Asia Pacific index excluding Japan is up 0.24 percent.
U.S. stocks finished flat on Friday, recovering from moderate declines as bargain hunters rushed in to buy Apple . Markets will be closed on Monday, and possibly on Tuesday, because of a storm approaching the United States’ east coast.
Asian shares edged higher on Monday after global equities ended last week on a subdued note.

FACTORS TO WATCH

Earnings: Bharat Heavy Electricals Ltd, Havells India Shares in Reliance Industries may gain after Veerappa Moily was installed as the new Oil Minister, sparking hopes of improved relations with the government.

TOP NEWS

Indian Prime Minister Manmohan Singh gave his cabinet an overdue facelift on Sunday, bringing in younger ministers in a bid to breathe new life into his aged, scandal-tainted government ahead of state and federal elections.

Two finance ministry officials told The Economic Times that they believe the central bank was unlikely to cut key policy rates at its half-yearly monetary policy review on Oct. 30. Indian liquor baron Vijay Mallya does not have to do a deal with U.K. drinks giant Diageo and will not sell prized assets to rescue his grounded Kingfisher airline, he told Reuters at the weekend.

FINANCIAL/REGULATORY

The Department of Disinvestment has selected ICICI Securities to act as its adviser to create and market the proposed central public sector enterprise exchange traded funds.

Infrastructure Development Finance Co Ltd’s July-Sept net profit fell 9.2 percent to 4.76 billion rupees from a year ago. (Reuters) India Infoline’s July-Sept net profit rose three-fold to 658.3 million rupees from 220.7 million rupees a year ago.

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