Indian markets quiet ahead of credit policy

January 24th, 2012 - 2:42 pm ICT by IANS  

Sensex Mumbai, Jan 24 (IANS) Indian equities markets were ruling quiet in Tuesday morning trade as investors cautiously awaited the third quarterly review of the monetary policy by the Reserve Bank of India.

The majority view is that the central bank may keep a status quo on key interest rates.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,806.72 points, ruled at 16,805.74 points, 54.01 points or 0.32 percent up from its previous close at 16,751.73 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also nudged up and was trading at 5,058.8 points — up 0.25 percent or 12.55 points from its previous close.

The RBI while releasing the macroeconomic and monetary development document Monday had signalled it may not lower interest rates, saying any easing would depend on evolving growth-inflation dynamics.

The central bank had raised rates 13 times since the beginning of 2010 to combat runaway inflation. The repo rate or the interest the central bank levies on short-term borrowing by commercial banks stands at 8.5 percent

Broader markets were also ruling lacklustre with the BSE 500 index ruling 0.26 percent higher from its previous close. The BSE midcap index was ruling 0.13 percent up and the BSE smallcap index gained 0.34 percent.

Prominent gainers on the 30-scrip Sensex included RIL, L&T;, HDFC and Cipla. Among losers were Sterlite, Hero MotoCorp, Maruti Suzuki and HDFC Bank.

The market breadth was positive with 946 stocks advancing, 756 on the decline and 91 remaining unchanged.

Asian markets were mixed. Major bourses like China and Hong Kong continued to be closed on account of holidays.

The Japanese Nikkei was sluggish at 8,787.14 points, up 0.24 percent from its previous close.

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