Markets up ahead of RBI; KFA up 3% as Mallya to infuse funds

Indian equity markets opened in the green ahead of the RBI's mid-quarter policy review today.

FP Staff December 18, 2012 09:40:21 IST
Markets up ahead of RBI; KFA up 3% as Mallya to infuse funds

Indian equity markets opened in the green ahead of the RBI's mid-quarter policy review today.

The Sensex opened at 19,326, up 0.43 percent and the Nifty at 5,880, up 0.38 percent.

Economists are near unanimous this time around in ruling out a rate cut by the Reserve Bank of India when it reviews its monetary policy today. However, as far as a reduction in cash reserve ratio (CRR) is concerned, there are conflicting opinions.

Markets up ahead of RBI KFA up 3 as Mallya to infuse funds

Reuters

Of 33 respondents to a Reuters poll, 16 expected a CRR cut today of either 25 or 50 basis points.

Additionally, presenting the Mid-Year Mid Year Economic Analysis which cut India's growth forecast, Chief Economic Advisor Raghuram Rajan said "We can not be satisfied with this (5.7-5.9 percent) rate of growth. So, we are not at the end of set of steps we need to take... we are at the end of the beginning. Further steps include a good confidence inducing budget, speeding up clearance for projects, and further steps in capital market reform."

Globally, Asian shares crept higher on Tuesday, tracking the overnight gains in US stocks on optimism for progress in resolving the US budget crisis before the year-end deadline.

Global shares advanced on Monday, supported by signs of tentative progress on negotiations to avert the US "fiscal cliff" of tax hikes and spending cuts due to set in at the start of next year.

Stocks in news

PSU banks including Indian Overseas Bank and Central Bank of India opened up 0.23 percent and 1.15 percent, respectively, after reports the government has approved the first tranche of Rs 12,000 crore fund infusion into state-owned banks, a move aimed at enhancing their capital base, a senior official said.

Axis Bank opened down 0.73 percent as the bank is looking to sell as many as 4.58 crore new shares to boost its capital before the Basel-III norms kick in, which at current prices may help it fetch more than Rs.6,000 crore.

Jaiprakash Power opened down 5.17 percent after reports that Jaypee Infra Ventures planned to sell 50 million shares in Jaiprakash Power Ventures Ltd. Tuesday to raise up to Rs 208 crore.

Kingfisher Airlines opened up 3 percent after promoter Vijay Mallya is ready to infuse funds, estimated to be in the region of Rs 425 crore, into the airline to restart operation in phased manner as and when DGCA gives the go-ahead.

Updated Date:

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