RBI's CRR cut leaves markets unimpressed, Sensex flat
The benchmark 30-share Sensex was not much impressed by the RBI's decision to cut cash reserve ratio by 0.25% points and keep interest rate unchanged, HT reports.business Updated: Sep 17, 2012 21:41 IST
The benchmark 30-share Sensex was not much impressed by the RBI's decision to cut cash reserve ratio (CRR) by 0.25% points and keep interest rate unchanged.
Although Sensex recorded a ninth straight day of gains, profit booking trimmed early gains on Monday, according to Alex Mathews, head research, Geojit BNP Paribas Financial Services.
Sensex rose just 78 points, or up 0.4%, to close at 18542 on Monday.
Realty (6.2%), capital goods (3.7%) and banking stocks (3.2%) gained, while FMCG stocks fell 3.7% on Monday. IT stocks too dropped 3.2%.
Pantaloon Retail is the top gainer on Monday with a 19.0% gain. Infrastructure companies such as GMR and Lanco too rose 12.0% and 10.0% respectively while Oriental Bank rose 9.3%.
"Markets rose today on the back of further policy announcements made by the government last Friday. The RBI responded to these initiatives by reducing CRR by 25 basis points," said Dipen Shah, head of fundamental research, Kotak Securities.