Home / Business / Money / Nifty hovers around 8700, Sensex flat; Bharti HUL gainers

Nifty hovers around 8700, Sensex flat; Bharti HUL gainers

11:00

The News International Team

11:30 am Rate cut? With the unexpected cut in repo rate, there are murmurs that RBI’s monetary easing stance is likley to continue. V Srinivasan executive Director, Corporate Banking at Axis Bank says the stance will be maintained for next 6-8 quarters with policy rates nearing 7 percent in next 3-4 quarters.

Speaking to CNBC-TV18, Srinivasan says bond yields will soften by 50-77 bps, but deposit rates can’t match the fall. Despite RBI notification on Monday, banks have not been able to lower deposit rates or base rate, which was expected post the policy rate cut. ‘Base rate cut will depend on deposit rate behaviour,” Srinivasan said while speaking to Adrian Mowat, JP Morgan’s Chief Asian & Emerging Equity Strategist on CNBC-TV18.

Don’t miss: Sales not picking up, rate cuts alone won’t help: Maruti

The market is gradually giving away its gains as the Nifty slips below the 8700-mark. The 50-share index is up 3.60 points at 8699.20 and the Sensex is up 36.98 points at 28821.65. About 1063 shares have advanced, 1375 shares declined, and 253 shares are unchanged. 

Bank Nifty continues its outperformance, CLSA in its latest report say credit-rating action shows early signs of recovery as the upgrade/downgrade ratio based on the three leading agencies reached 1.8x in 2014, the highest in four years. They expect banks’ asset quality to improve further in 2015 as stronger economic growth and lower input costs boost corporate profitability.

Bharti Airtel, SBI, HDFC, Maruti and HUL are top gainers while Sesa Sterlite, Hindalco, Tata Motors, Tata Steel and Cipla are among the losers in the Sensex.

Globally, Japanese markets widen losses. The Bank of Japan maintained its monetary stimulus. FY15 GDP estimates, however, were reduced to a decline of 0.5 percent versus a growth of 0.5 percent estimated earlier in October. Brent trades around USD 48 per barrel while gold trades at 5-month highs.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...