Post Session- Market spooks as RBI maintains status quo Analysis for Dec 02, 2014

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The key domestic benchmarks ended lower for second straight session on Tuesday after the RBI surprised the street by maintaining status quo in its fifth bi-monthly monetary policy review today. The apex bank kept its key repo rate unchanged at 8 per cent while the cash reserve ratio (CRR) was left unchanged at 4 per cent. The central bank stressed that it would be premature to change its monetary policy stance at this point in time. Sounding more dovish than previous monetary policy reviews, the RBI said that if the current inflation trend persists and fiscal progress continues, a change in monetary policy stance is likely early in 2015, a clear signal of a rate cut in the coming months.

On the global front, most of Asian markets ended higher Tuesday, amid speculation that the government would further ease monetary stance. Japan"s Nikkei hit seven-year high on Tuesday on media buzz that the Bank of Japan was buying stocks to increase liquidity in the system. Besides, China"s Shanghai Composite closed higher as the People"s Bank of China cut money market rates to infuse liquidity in the financial system for a second week.

The BSE SENSEX closed at 28444.01 down by 115.61 points or by 0.4 per cent, and then NSE Nifty ended at 8524.7 down by 31.2 points or by 0.36 per cent.

In the choppy trade, the BSE Sensex touched intraday high of 28576.39 and intraday low of 28386.46, while the NSE Nifty touched intraday high of 8560.20 and intraday low of 8504.65.

Meanwhile, the BSE MIDCAP closed at 10356.11 up by 93.21 points or by 0.91 per cent, while the BSE SMLCAP ended at 11251.21 up by 61.51 points or by 0.55 per cent.

On the Sectoral front, IT and auto stocks declined 1.48 per cent and 1.05 per cent, respectively.

The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3208, shares advanced were 1594 while 1473 shares declined and 141 were unchanged..

The top losers of the BSE Sensex pack were GAIL (India) Ltd. (Rs. 465.35,-2.85%), Mahindra & Mahindra Ltd. (Rs. 1265.55,-2.36%), Infosys Ltd. (Rs. 2127.95,-2.18%), Housing Development Finance Corporation Ltd. (Rs. 1121.00,-1.51%), Tata Consultancy Services Ltd. (Rs. 2656.05,-1.38%), among others.

On the flip side, Hindalco Industries Ltd. (Rs. 171.40,+2.51%), Bharti Airtel Ltd. (Rs. 384.30,+1.76%), Larsen & Toubro Ltd. (Rs. 1639.90,+1.12%), Sesa Sterlite Ltd. (Rs. 229.20,+1.10%), ICICI Bank Ltd. (Rs. 1770.55,+0.74%), were among notable gainers on BSE.

Story first published: Tuesday, December 2, 2014, 16:48 [IST]
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