RBI policy fails to cheer markets; Sensex ends flat
After flipping between positive and negative zones, the benchmark BSE Sensex on Tuesday settled with a marginal rise of 12 points at 28,516.59, after RBI keeping key policy rate unchanged failed to cheer investors.business Updated: Apr 07, 2015 19:17 IST
After flipping between positive and negative zones, the benchmark BSE Sensex on Tuesday settled with a marginal rise of 12 points at 28,516.59, after RBI keeping key policy rate unchanged failed to cheer investors.
The 30-share Sensex opened firm and rose over 105 points by rallying to 28,641.08 in early trade. However, it pared gains and fell to the day's low of 28,274.36 after the RBI kept policy rate unchanged.
In its monetary policy, RBI left the short-term lending rate or repo rate unchanged at 7.5% and the cash reserve ratio static at 4%. The statutory liquidity ratio (SLR) has also been retained at 21.5%.
"The move was widely anticipated by the markets and was discounted in current market prices," said Hiren Dhakan, Associate Fund manager at Bonanza Portfolio.
However, buying in blue-chip stocks at the fag-end helped the BSE Sensex to finish with a marginal rise of 12.13 points or 0.04% at 28,516.59.
On similar lines, the 50-share NSE Nifty also moved in a wide range of 8,693.60 and 8,586.85 before ending at 8,660.30, showing a marginal gain of 0.40 points.
Major gainers on the Sensex included, Tata Steel at 4.89%, SSLT 3.14%, Bajaj Auto 3.03%, NTPC 2.73%, Bharti Airtel 2.03%, M&M 1.92%, Hindalco 1.67% and Tata Power 1.62%.
Among banking stocks, Axis Bank at 1.69% was the biggest loser followed by ICICI Bank at 1.20% and SBI 0.97%.
Sectorally, realty index topped the worst performer list by falling 1.62%, followed by bankex shedding 0.71% and healthcare losing 0.19%.
"The concerns with respect to normalisation of Fed policy have been dissipated for the time being due to likely postponement of the tightening of the policy rates," said Hitesh Agrawal, Head Research of Reliance Securities.
Asian markets ended higher following overnight gains in the US stocks. Key benchmark indices in China, South Korea, Japan, Singapore and Taiwan rose in the range of 0.37% to 2.52%. Stock market in Hong Kong remained closed on Tuesday for Ching Ming Festival.
Foreign portfolio investors (FPIs) bought shares worth Rs 936.81 crore yesterday, as per the provisional data.