Stock markets continued their bullish trend on Tuesday as the Nifty scaled 9,700 for the first time, while benchmark BSE Sensex rose by 120.83 points, or 0.38 per cent, to all-time high of 31,430.32 in early trade.
Gainers include Tata Consultancy Servies and State Bank of India.
Meanwhile, the rupee strengthened by 4 paise to 64.32 against the US dollar in early trade at the Interbank Foreign Exchange market on sustained selling of the American currency by banks and exporters.
Forex dealers said that besides continued selling of the greenback by banks and exporters, a higher opening of the domestic equity market backed the rupee.
Market trends come in the back drop of two-day policy review by RBI’s monetary policy committee, kicking off on Tuesday. The stock market is largely expecting status quo on the policy rate. “RBI could maintain status quo on policy rates even as the case for a rate cut is strengthening. While we are not expecting an outright cut in the June policy review, we certainly expect the apex bank to acknowledge a softer growth-inflation mix and hence foresee a dovish tilt in the monetary stance. We also see good likelihood of rate cuts over ensuing 6-9 months,” said Edelweiss Securities.