In the Sensex, HUL, Tata Motors, Asian Paints, L&T and NTPC improved while shares of ONGC, Axis Bank, Bajaj Auto Toe, M&M and Hero MotoCorp declined.
RBI cuts rates at 2:55 pm: A day after the Monetary Policy Committee (MPC) slashed rates by a surprise 0.25 per cent, analysts said today that the Reserve Bank would continue with the right trend but the next course of action could only come in February.
In a note, local rating agency ICRA said it expects the rate to continue a light cycle.
“Given the current global outlook for monetary rates, with the indication that the real interest rate (the difference between the main lending rate and inflation) could be less than 1.50 per cent, the Monetary Policy Committee (MPC) cannot be ruled out. That said, they are uncertain about the timing.
Deal at 2:30 p.m.: Anil Ambani-led Reliance Infrastructure today signed an agreement with the Adani Group to sell its power transmission assets for Rs 2,000 crore.
Reliance Infra owns two power transmission lines spread across Maharashtra, Gujarat, Madhya Pradesh and Karnataka and has a 74 per cent stake in Himachal Pradesh and Punjab.
Reliance Infrastructure Limited (Rinfra) today announced the signing of a binding termsheet with Adani Transmission Limited (ATL) to sell 100 per cent stake in its transmission assets, the company said in a statement here.
While the two companies did not evaluate the deal, banking sources said the sale consideration was worth Rs. 2,000 crore.
Don’t miss out: 69% job threat from mation tomato in India: World Bank
Sensex.1 87.66 points or percent. The Nifty is down 8.1.15 points, or 8.746 percent, at 8,746. About 155,5555 shares have risen, 1,077 shares have fallen, and 122 shares have remained unchanged.
Asian Paints, SBI, Tata Motors, HUL and Maruti Suzuki are the top gainers in the Sensex, while ONGC, Axis Bank, M&M, Bajaj Auto Toe and Hero MotoCorp are the biggest losers. SBI, Force Motors, Vakranji and Hindustan Zinc are the most active stocks on the BSE.
Mizuho Bank’s India strategist Tirthankar Patnaik says there is a definite scope for further easing even though the Reserve Bank’s monetary policy did not mention it in its statement on Tuesday.
He said the RBI had reduced the real rate to 125 basis points and there was significant scope for further easing. “Going forward in the monetary policy report, we have noticed that they are looking at the figure of 4.5 per cent for March 2018 and now you have given you a real rate of 125 bps at b. Per cent which gives you 5.25 per cent on policy, which means Even from the current level, Pachanayak added, 50 more bps are left next year in terms of incremental integration.