Sensex trades volatile, Nifty hovers around 9,250; RBI policy eyed

Investors expect RBI to announce measures to absorb liquidity that has accumulated post note ban

In a volatile trading session, the Nifty50 index was hovering around its crucial 9,250 mark after hitting its fresh lifetime high of 9265 level in the early session. The sentiment remained cautious as investors took a breather ahead of the Reserve Bank of India's policy meet due tomorrow.

At 01:30 pm, the S&P BSE Sensex was trading at 29,946, up 33 points, while the broader Nifty50 was ruling at 9,254 up 17 points. 

In the broader market, the S&P BSE Smallcap index gained over 1%, while the S&P BSE Midcap was up 0.5%. 

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,909 shares rose and 792 shares declined. A total of 122 shares were unchanged.

The monetary policy committee of the Reserve Bank of India (RBI) is likely to leave the repo rate at 6.25%, where it has been since October, a Reuters poll found.

However, investors are expecting the RBI to announce measures to absorb liquidity that has accumulated post demonetisation.

Housing Development Finance Corp dropped as much as 2.25% and was the top Sensex loser. 

Among gainers, Shankara Building Products surged as much as 37 percent on its market debut, with its up to 3.45 billion rupees ($52.96 million) IPO oversubscribed more than 41 times. 

Shares of Titan Company hit a record high after it said consumer sentiment has recovered in January-March quarter and sales were good for all divisions.

TVS Motor Company rose as much as 2.7%  to a record high after posting a 10 percent increase in total vehicle sales for March 2017.

Indian stock, bonds and currency markets were closed on Tuesday for a market holiday.

(With inputs from Reuters)