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
- Vivek Hi CB sir thanks for your continuous s...In Intraday calls for 16-09-14
- Nic Hi CB sir, I have RS software at 755 ...In Intraday calls for 16-09-14
- Praveen THANK FOR THE GUDIANCE & SUPPORT :...In Intraday calls for 16-09-14
- NIZ sir can i enter nifty 7950 or 8000 ce?...In Intraday calls for 16-09-14
- Prabhu Hi CB, tomorrow Oriental Bank equity s...In Intraday calls for 16-09-14
- arul Hi sir, I bought sun tv 370 ce at 7, c...In Intraday calls for 16-09-14
- suresh M hi cb is US fed policy review due on t...In Intraday calls for 16-09-14
- Hanshu Hi CB, Pls advise where to enter Ashok...In Intraday calls for 16-09-14
- suresh M thanks cb..will the bleeding continue ...In Intraday calls for 16-09-14
- CB Hi dev, can add 6-7rs....In Intraday calls for 16-09-14
- CB Hi Hanshu, as of now seems may open fl...In Intraday calls for 16-09-14
- dev Hi CB sir,tomorrow aarti ind target?...In Intraday calls for 16-09-14
- Hanshu Hi CB, DOW up 100+ points. Will nifty ...In Intraday calls for 16-09-14