 "RBI policy review fine print disappoints; markets close in red")
The Indian equity markets ended a volatile session in the red, after the fine print of the Reserve Bank of India ’s monetary policy review statement disappointed investors.
The Sensex ended at 19990.90, down 0.56 percent, and the Nifty at 6045, down 0.41 percent.
The RBI lowered its key policy rate and banks’ cash reserve ratio, signalling its support to the government’s efforts to bring the economy back on track, but struck a cautious note on further easing as it waits to see how the government controls its fiscal deficit.
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Soon after the RBI released its statement, the benchmark indices rose as investors turned bullish. However, they dropped as the reality kicked in that the underlying message on inflation is less comforting.
“Reading between the lines, what Subbarao said was not that inflation is now less of a worry than growth, but that we may now have a new normal for inflation,” an earlier Firstpost article noted.
Interest rate sensitive sector stocks declined, with BSE Auto index down 1.2 percent and Bankex 0.5 percent.
Stocks in news
Adani Ports closed up 6 percent a day after the company says it will sell a majority stake in Australia’s Abbot Point port to the Adani family.
Reliance Capital closed down almost 2 percent after the compnay today posted a consolidated net profit of Rs 101 crore for the quarter ended December 31, 2012.
Axis Bank closed up 4 percent following its stake sale to raise $1 billion.
Dabur India closed down 1 percent even as the company posted a 22 percent in net profit.
With inputs from Agencies