Moneycontrol
Dec 18, 2012 12:06 PM IST | Source: Moneycontrol.com

RBI inaction keeps mkt flat; SBI, Axis fall over 2%

Equity benchmarks witnessing caution ahead of the Reserve Bank of India's (RBI) policy review, swiftly turned red after the rates were left unchanged. Bank Nifty fell 1.5% and bond yields hardened by 0.33% following RBI's `no-action' mode.

RBI inaction keeps mkt flat; SBI, Axis fall over 2%

Moneycontrol Bureau


Equity benchmarks witnessing caution ahead of the Reserve Bank of India's (RBI) policy review, swiftly turned red after the rates were left unchanged. Bank Nifty fell 1.5% and bond yields hardened by 0.33% following RBI's `no-action' mode.  However, it recouped its losses soon after to trade almost flat.


A CNBC-TV18 poll showed majority of the participants were betting in favour of a CRR cut after November inflation showed a decline. Major banking stocks like HDFC Bank, SBI,  ICICI Bank and Axis Bank were trading with 1%, 2.20%, 1.70% and 2.33% cuts. Experts said bond yields may go down to sub 8% yields by Budget, if all other parametres remain constant.


At 11.03 am the Sensex was down 58.75 points or 0.31% at 19185.67, and the Nifty was down 22.30 points or 0.38% at 5835.60. 


Meanwhile, Tata Motors gained 1.9 percent, up for a fourth day, after stronger-than-expected November sales at Jaguar Land Rover (JLR) reduced concerns about the outlook for the key unit of the Indian auto maker.

Sun Pharmaceutical Industries gained 2 percent after it said on Monday Caraco Pharmaceutical Laboratories (Caraco), its wholly-owned subsidiary, has acquired URL generic business from Takeda Pharmaceutical Company.
S. Korea's Doosan Heavy Industries & Construction Co Ltd said on Tuesday it won a 600 billion order from NTPC Ltd to provide two boilers for use at a power plant in Chhattisgarh, India. The stock was trading up 0.49%.

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