The Reserve Bank of India kept interest rates unchanged at 8% on Tuesday as widely expected, staying focused on containing inflation while adopting a more dovish tone in response to the government’s call for help to revive economic growth. However, the central bank indicated rates could ease early next year as inflation shows signs of cooling.
Asian markets are trading firm. A rebound in crude oil and other commodity prices favouring the stock markets of resource-exporting countries. Japanese shares are up 0.5% and Shanghai Composite is up 3%, Straits Times is up 0.7% and Hang Seng is up 1.4%.
Sectors & Key Stocks:
An appreciating rupee has casted its shadow on the IT stocks. Wipro and TCS are down 0.4% each. Infosys turned ex-bonus today for 1:1 bonus issue. The stock is down by almost 2%. The company has fixed December 3, 2014 as the record date for the purpose of allotment of bonus shares. However, the stock turned ex-bonus today.
The financial segment is witnessing selling after Reserve Bank of India kept policy rates unchanged. HDFC twins, Axis Bank and SBI have lost between 0.4-1.7%.
The auto pack is losing sheen in today’s trade. Bajaj Auto has dropped 1.5%. The company’s total sales in November 2014 declined to 309,259 units compared to 310,591 units in the same month last year.
M&M has slipped 3% after reporting a 13% decline in total car sales numbers in November, 2014 compared to same month last year. Hero Motocorp, Maruti Suzuki and Tata Motors have lost between 0.5-1%.
On the flip side, oil and gas shares firmed up after the brief correction on Monday. ONGC and Reliance Industries gained 0.7% each.
Fresh buying is visible in the metal pack. Hindalco, Sesa Sterlite, Tata steel and COAL India are up between 0.5-1.6%.
Bharti Airtel, L&T, NTPC and Sun Pharma are some of the notable names in green among others and are up between 0.5-1.3%.
In the broader market, the BSE Mid-cap index is up 0.4% and Small-cap index is trading with marginal gains.
Market breadth is weak with 1,426 losers and 1,245 gainers on the BSE.