Sensex, Nifty at new closing highs, rate cut hopes buoy sentiments

The gains come a day before the Reserve Bank of India (RBI) is widely expected to cut interest rates by 25 basis points.Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.Similaly, the 30-scrip Sensitive Index (Sensex) of the BSE closed at a fresh high of 32,575.17 points – up 60.23 points, or 0.19 per cent, from its previous close of 32,514.94 points.In the morning session, the National Stock Exchange Nifty opened at a high of 10,101.05.For the mid-day report, click.The Dow rose 0.3 percent to reach another record closing high, while the Nasdaq Composite dropped 0.4 percent and the S&P 500 edged down 0.1 percent.The rupee firmed up by 14 paise to 64.05 against the United States dollar today as exporters and banks intensified selling of the American currency.”Markets rallied further on Tuesday to close at new life highs”.The company hopes to raise Rs 1,400-1,500 crore through an initial public offering.The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) stood at 47.9 in July, down from 50.9 in June, its lowest mark since February 2009.Expectations the central bank will relax policy rates in its policy meet on Wednesday considering inflationary trend is turning benign, too buoyed sentiment.Notably, the index had seen a surge of over 4 per cent on Monday.Besides, the key equity indices pared their Friday losses on the back of intense buying activities in banking, capital goods and metal stocks.The auto sub-index of NSE, Nifty Auto, rose 1.53 per cent, led by gains in Eicher Motors, Hero MotoCorp, Mahindra & Mahindra and Maruti Suzuki.On the other hand, Housing Development Finance Corporation (1.07%), Oil & Natural Gas Corporation (0.32%), Axis Bank (0.24%), HDFC Bank (0.14%), NTPC (0.12%), and Reliance Industries (0.11%) were the biggest losers in the Sensex.