SENSEX  26,407.48  47.37
NIFTY  7,908.05  16.95
« Back to News

RBI lets mkt down, Nifty at day's low, bond yields up 1.11%
18 Jun 2012, 10:59 AM
The BSE Sensex and NSE Nifty erased all early gains as the Reserve Bank of India (RBI) disappointed the street by keeping repo rate and cash reserve ratio unchanged in its mid-quarter policy review on Monday.

Traders wound up long positions that had been created in last two weeks on hopes that the central bank may cut repo rate or cash reserve ratio by 25 basis points at least.

The BSE benchmark fell 143.55 points or 0.85% to 16806.28 and the NSE benchmark lost 48.85 points to 5,090.

Even the Indian rupee depreciated by 18 paise to 55.57 as against the US dollar. 8.15% 10-year bond yields spiked 1.11% to 8.14.

In its statement, the RBI says, global macro and financial conditions have been deteriorated since April. Even domestic macro situation raises deepening concerns.

Retail inflation is on uptrend, so cut in policy rates now could exacerbate inflation, the RBI says. Inflation for May increased to 7.55% from 7.23% in April.

Central bank has hiked Export Credit Refinance Facility to 50% that will be effective from fortnight beginning June 30.

The BSE Bankex fell over 2% as country's largest lenders State Bank of India, ICICI Bank and HDFC Bank were down 2-3%. Housing finance company HDFC too lost 1%.

FMCG majors ITC and HUL declined 1% each.

Index heavyweight Reliance Industries and L&T slipped over 0.6%.

About two shares declined for every share rising on the National Stock Exchange.

At 10:22 hours IST: Sensex holds 17000 ahead of RBI policy; SBI rises 2%

The BSE Sensex continued to trade above the 17,000 level ahead of credit policy, supported by banks, capital goods, auto, oil & gas and metals stocks. Asian markets remained strong after favourable outcome from Greece's elections.

The BSE benchmark rose 130.28 points to 17080.11 that hit the 17,000 level for the first time since May 4, 2012. Meanwhile, the NSE benchmark gained 41 points or 0.8% at 5,180.05, though there was somewhat profit
Page 1 of 3 Next page  »
Next Story  »
Post your View/Query
More on markets:
Market Outlook | Udayan's Comments  | Stock Views  | Broker Recos
Font Size:     Feedback     Desktop site »
Language: English    हिंदी    ગુજરાતી
© 2014. a Web18 Venture