Nifty auto index is trading 2 percent lower dragged by Bajaj Auto, Ashok Leyland and TVS Motor while Bank Nifty is in the green led by IndusInd Bank, Federal Bank, HDFC Bank, ICICI Bank and Punjab National Bank.
The RBI MPC is likely to continue slightly hawkish pause. "We continue to expect the RBI to persist with its slightly hawkish pause in its policy, on the side of caution. Inflation is likely peaking off to 5 percent in January from 5.2 percent in December with the vegetable price spike is expectedly reversing," BofAML said in a report.
Onto specifics, Dipan Mehta, Member of BSE & NSE feels JSPL may be underpriced going by fundamentals. Investors can buy into the stock at current market price with 2-3 years horizon.
Shares in interest rate-sensitive sectors such as auto, banks and real estate fell Tuesday after the Reserve Bank of India decided to hold interest rates at current levels, despite a rising chorus for a rate cut.
N Sethuram, CIO of Daiwa Mutual Funds, in an interview with CNBC-TV18 gave his reading of the market post inflation numbers and his outlook on how sector-specific stocks would play out ahead of the monetary policy.