The Sensex posted slight gains on Wednesday, as Reliance Industries Ltd recovered from a four-session losing streak, while ICICI Bank Ltd rose a day ahead of its quarterly earnings.
Still, sentiment remained weak even after the Reserve Bank of India (RBI) lowered its key policy rate yesterday, as the central bank struck a cautious note on further easing, citing concerns about the high current account and fiscal deficits and inflationary risks. Market participants are now focusing on the government's actions ahead of the budget presentation in late February, while earnings from companies, such as IDFC Ltd this week, will determine the short-term direction of the market.
The Sensex rose 0.07 per cent, or 14.10 points, to end at 20,005, closing slightly above the psychologically important 20,000 mark after briefly hitting a two-year high yesterday. The Nifty rose 0.1 per cent, or 5.85 points, to end at 6055.75.