BSE sensex gains on rate cut hopes after core inflation falls

Last Updated: Thu, Mar 14, 2013 07:15 hrs

The BSE Sensex is up 0.44 percent while the 50-share NSE Nifty gains 0.45 percent, as February core inflation at 3.8 percent gives enough headroom for rate cut by the RBI in its policy review on March 19, dealers say.

India's core wholesale price inflation was estimated at 3.8 percent in February from a year earlier, according to a Reuters snap survey of three analysts and traders on Thursday, below expectations of an around 4.2 percent rise.

Indian government data released on Thursday gives the Reserve Bank of India room to ease monetary policy when it meets next week, the prime minister's economic adviser, C. Rangarajan, said on CNBC-TV18 television news channel.

Rate-sensitive stocks such as State Bank of India gains 2 percent while ICICI Bank is up 1.2 percent.

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