* NSE index up 0.7 pct, BSE index 0.8 pct higher
* Mid-cap stocks hit record highs
* Banking stocks among top gainers
By Arnab Paul
Feb 6 Indian shares rose for a fourth straight
session on Monday to a four-month high as investors bet the
central bank would ease interest rates this week to help revive
demand after Prime Minister Narendra Modi's currency crackdown
The Reserve Bank of India is expected to cut interest rates
by 25 basis points at its policy review on Wednesday, a Reuters
poll showed, after consumer inflation hit a two-year low in
December, giving the central bank room to ease.
The positive sentiment lifted midcaps such as Adani
Enterprises Ltd, Wockhardt Ltd and Godrej
Industries Ltd, sending the NSE midcap 100 index
higher by 1 percent to a record high.
Still, some analysts say shares could ease as the NSE index
approaches the 9,000 level after recent gains.
"Markets are in a bullish mood because of rate-cut
expectations," said R.K. Gupta, managing director at Taurus
Asset Management Company.
"However, irrespective of what the RBI does, I expect the
market to correct itself with the upside being 9,000 points."
The broader NSE index was up 0.7 percent at 8,802.30 as of
0555 GMT after earlier hitting its highest since Sept. 26, 2016.
The benchmark BSE index was 0.8 percent higher at
28,465.38 after earlier hitting its highest since Oct. 5, 2016.
Banking stocks were among the top gainers with ICICI Bank
and Bank of Baroda rising as much as 1.94
percent and 2.82 percent, respectively.
Among the losers, Dr. Reddy's Laboratories Ltd
fell as much as 3.14 percent after the company reported a 16
percent drop in its consolidated net profit for the December
(Editing by Subhranshu Sahu)