Indian benchmark indices BSE Sensex and NSE's Nifty 50 hit fresh record highs on Wednesday led by shares of banks and metal companies. Positive cues from global markets and expectations of a rate cut the Reserve Bank of India also boosted Indian shares.

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The Sensex gained as much as 185 points to hit a new high of 39,241, surpassing previous high of 39,115, hit on April 1, 2019. The broader Nifty also touched a new high of 11,761, crossing a previous high, hit in August 2018.

The Reserve Bank of India's monetary policy meeting will announce its decision April 4 after a three-day meeting. All the respondents to CNBC-TV18's poll expect a 25 basis points rate cut from. The RBI will cut key rates for the second consecutive time, with retail inflation continuing to remain low and domestic economy showing muted growth prospects. One basis point is a hundredth of a percentage point.

Moreover, continued inflow of foreign capital also supported the markets. Foreign capital inflow had increased in India in the last two months. In March, foreign institutional investors (FII) infused a net Rs 45,981 crore, including a net Rs 33,980 crore in stocks and Rs 12,001 crore in debt. In February, FIIs invested a net amount of Rs 11,182 crore in the capital markets.

At 9:20 am, the S&P BSE Sensex was trading at 39,206, up 150 points, while the broader NSE Nifty50 was ruling at 11,750, adding 37 points. Meanwhile, broader markets were in-line with the frontline indices with the Nifty MidCap rising 0.5 percent and the Nifty SmallCap advancing 0.6 percent.

Yes Bank, Tata Steel, Indiabulls Housing Finance, Zee, and Tata Motors were top gainers on Nifty50, while Eicher Motors, NTPC, Infosys, Coal India and HUL fell the most.

Nifty Bank also hit a new record high for a second straight session led by gains in Bank of Baroda, IndusInd Bank, Kotak Bank, Yes Bank, and HDFC Bank. Other banking and financial indices also rose at the opening.

Nifty Auto extended gains for the second session, lifted by Tata Motors, up 2 percent in early morning trade. Maruti, M&M and Ashok Leyland also gained. Eicher Motors fell 1 percent after Nomura downgraded the stocks to reduce from neutral, target cut to Rs 18,335 from Rs 20,653 per share.

Globally, Asian shares rose to fresh seven-month highs on Wednesday as global investors took heart from signs of progress in US-China trade talks and brisk economic data, while oil approached the key $70 per barrel mark. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.65 percent shortly after markets in China opened, touching its highest level since late August.

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First Published:Apr 3, 2019 10:09 AM IST