Markets began the day on a flat day with no huge gainers as such after the fine print of the Reserve Bank of India ’s monetary policy review statement disappointed investors.
RBI lowered its key policy rate and banks’ cash reserve ratio but struck a cautious note on further easing as it waits to see how the government controls its fiscal deficit.The attention will now be directed to what policy measures are likely in the budget.
While the Sensex opened 0.20 percent higher at 20031, the Nifty was up 0.25 percent at 6064.
However, market analyst Sudarshan Sukhani continues to remain bullish on Nifty despite the volatility.
“This kind of volatility will occur, not because of Reserve Bank of India (RBI) but because of variety of news. Now we are completely joined with international markets. We have to accept it. We have to see what is the sum total of the trend. The trend is still up. So, the bias still remains mildly bullish,” he told CNBC-TV 18 in an interview.
The F&O expiry on Thursday will cause some readjustments which could swing indices either way. Corporate results will continue to flow in with stock-specific activity continuing in various counters.
Reality and banking stocks led the gains post the RBI rate cut as home and car loans are set to get cheaper. DLF was the top Nifty gainer, up 1.7 percent, while Axis Bank was up 1 percent.
RIL, Infosys, Wipro, SBI, ICICI Bank, Tata Steel, Hero MotoCorp, Sun Pharma, ONGC, Bajaj Auto, Hindalco Inds, Mahindra & Mahindra are among gainers in Sensex and Nifty.
TCS, Tata Power, Tata Motors, HDFC, Dr Reddys Lab, ITC, Gail India, are among losers in Sensex and Nifty.
Stocks in news
It’s not been a good start for Crompton Greaves as its shares fall more then 6 pct after December quarter loss.
Reliance Industries, rebounded after four days of selloff. It traded 1.3 percent higher.