Markets steady after RBI policy shock

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Markets steady after RBI policy shock
The benchmark indices recovered Monday's losses and were trading in positive territoty in early morning session. Asian peers were trading low on worries over Spanish bond yields which increased to 7%, rekindling fears of a fragile banking system in Spain.

On Monday, markets reacted negatively to the Reserve Bank of India's decision to keep repo rates and CRR unchanged. Banking stocks plunged after the reports as the marketmen had expected atleast a 25 basis points cut in the repo rate. Also, the Fitch Ratings revised downwards its India outlook to negative from stable reflecting increasing risk.

Investors were also cautious ahead of the two -day meet of the Federal Reserve beginning on Tuesday where there was increased optimism over further Monetary Easing.

The Sensex was trading at 16,769 points, higher by 61 points and the Nifty was seen trading at 5,075 points, higher by 11 points at 9.30 am IST.

On the sectoral front on BSE, all the sectors were trading positively, except Power, IT and TECk.

The gainers in morning trade were Tata Motors, Jaiprakash Associates, Sesa Goa and Sterlite Industries.

Stocks that failed to lure investors in early trade were Ambuja Cements, ACC, Infosys and Cairn India.

Read more about: sensex, nifty
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