Markets pause ahead of RBI policy
Markets ended lower on Monday, ahead of the Reserve Bank of India’s mid-quarter monetary policy review, weighed down by selling pressure in HDFC Group shares along with ITC and TCS.
The 30-share Sensex ended down 73 points at 19,244 and the 50-share Nifty ended 22 points lower at 5,858.
Goldman Sachs expects the Reserve Bank of India (RBI) to cut its key interest rate by 25 basis points at its policy review on Tuesday after last week’s inflation data came well below expectations, and as economic growth remains sluggish.
“There has been a persistent higher LAF (liquidity adjustment facility) number as well, which indicates a structural liquidity deficit in the system, and has rightly resulted in the resumption of open market operations by RBI. Improvement in liquidity is key for monetary policy easing as rate cuts alone will not be able to transmit into lending rate cuts. Given the above backdrop we expect RBI to cut CRR by 25 basis points on December 18 to ensure adequate liquidity and wait for inflation data while having a cautious watch on government’s ability to take prudent quantitative and concrete steps leading towards fiscal discipline, before actioning a rate cut.”, said Arun Khurana, head-global markets group, IndusInd Bank.
Search Our Archives
- Stocks Trading above their 50 day moving average - DMA In Stock Research
- Download free Ebooks based on Technical Analysis In Personal Training
- TOP 100 Stocks with the Highest P/E as on July 14th, 2013 In Stock Research
- TOP 100 Stocks with the Lowest P/E as on July 14th, 2013 In Stock Research
- Charting Pathsala - Your guide to Techincals In Technical Analysis
- munesh good nigth...In Intraday calls for 24-07-14
- SHASHI M THANKS SIR.........GOOD NIGHT CB SIR.....In Intraday calls for 24-07-14
- SHASHI M HI CB SIR....I have DHFL100@412.00.......In Intraday calls for 24-07-14
- taj cb sir where do u c nifty july series...In Intraday calls for 24-07-14
- K K Hi trade4444, Hi CB, Please read...In Intraday calls for 24-07-14
- K K Hi Raja, Let the markets settle, then ...In Intraday calls for 24-07-14
- K K Hi Ratika, Ok Sure, will look at Nif...In Intraday calls for 24-07-14
- Lavanya thnks for support...In Intraday calls for 24-07-14
- sham Hi NIZ, thanks niz.. sure i will decid...In Intraday calls for 24-07-14
- sham Today Air Algerie plan with 116 passen...In Intraday calls for 24-07-14
- Prathmesh ok but shoud I keep ACE ?...In Intraday calls for 24-07-14
- Raja Hi K K, i am regularly following your ...In Intraday calls for 24-07-14
- VIJAY sir you view on NAI SARGIK ( bsc -5313...In Intraday calls for 24-07-14