Sensex ends 199 points higher, Nifty retains 8,800 ahead of RBI policy

The positive sentiment lifted Nifty Midcap and Smallcap indices higher by 1.1%and 0.9% respectively

Benchmark indices settled the day at 4-month high as investors bet RBI will cut interest rates in their policy review meet later this week.
 
Most of the 17 economists polled by Business Standard were hesitant to give a clear call on the possible policy outcome. While six economists expected RBI to pause on Wednesday, 11 said the chances of RBI cutting rates by 25 basis points (bps) were a bit on the higher side.
 
Nifty50 ended above it's crucial 8,800 level for the first time since September 19, 2016 led by gain in realty, pharma, FMCG, and banking