Benchmarks moved higher for eighth straight session led by gains in banking stocks ahead of the Reserve Bank of Indias monetary policy review. Profit booking emerged in IT stocks after a rally in previous session.

One only hopes that the RBI doesnt spoil the party as it takes up a mid-quarter review of its monetary policy today. Expectations are that it will most probably go ahead with another hike before considering a pause.

The start will be flat to slightly lower on indecisive global cues but the finish may be different if bulls have their way. Looks like the liquidity support from FIIs is negating uncertainty on the external front. Stronger-than-expected July IIP data set off the current frenzy. A moderating inflation added to the euphoria.

A less hawkish RBI commentary may come more than handy. Global factors are important as well but of late India has shown a tendency to overlook bad overseas events.

FII inflows are robust and are unlikely to see any material reversal. All eyes will be on the next batch of quarterly results next month, said IIFL report.

At 9:50 am, Bombay Stock Exchanges Sensex was at 19538.90, up 36.79 points or 0.19 per cent. The index touched a high of 19559.61 and low of 19456.71 in early trade.

National Stock Exchanges Nifty was at 5867.30, up 6.35 points or 0.11 per cent. The National Stock Exchange benchmark hit a high of 5874.15 against low of 5843.55 in trade so far.

BSE Midcap Index was up 0.29 per cent and BSE Smallcap Index moved 0.42 per cent higher.

Amongst the sectoral indices, BSE FMCG Index moved 1.05 per cent higher, BSE Bankex advanced 1.04 per cent and BSE Oil&gas Index moved 0.50 percent higher. BSE IT Index was down 1.49 per cent.

State Bank of India (2.23%), Hero Honda (1.06%), HUL (1.05%), ICICI Bank (0.86%) and ITC (0.69%) were amongst the top Sensex gainers.

TCS (-2.15%), Infosys Technologies (-1.91%), Sterlite Industries (-0.92%), M&M (0.86%) and Jaiprakash Associates (-0.68%) led the decline.

Market breadth was positive on the BSE with 1323 gainers against 1068 losers.

Meanwhile, the Asian markets were witnessing a subdued session. Nikkei 225 was down 0.09 per cent, Taiwan Weighted slipped 0.60 per cent and Seoul Composite declined 0.41 per cent.