Mumbai, Dec 16 (IANS) Market punters and economists are hoping that the Reserve Bank of India (RBI) will Friday hold off another rate hike in the wake of slowing growth and negative industrial output.

The RBI will unveil its mid-quarterly review of the monetary policy at noon.

While the last 13 such meetings since early 2010 have resulted in key interest rates being increased, this time the apex bank may be more inclined to give assurance to industry as inflation has started showing signs of decline.

Food inflation has dipped to 4.35 percent for the week ended Dec 3, while headline inflation - though still above 9 percent - has shown some signs of decline.

On the other hand industrial production has taken a beating in the past four months. High interest rates have deterred investments and brought down the index of industrial production (IIP) into negative terrain. IIP for October was logged at (-) 5.1 percent.

Traders believed that a rate hike was unlikely this time as well with a benchmark index for Indian equities rising over 156 points in early trade Friday.

The 30-scrip sensitive index (Sensex) of the BSE, which opened at 15,868.78 points, was ruling at 15,993.07 points, about 15 minutes into trade, 156.6 points or 0.99 percent up from its previous close at 15,836.47 points.