Sensex Opens Flat; Banking Stocks Tentative Ahead Of RBI Policy

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, June 6, 2016, 9:26 [IST]

Benchmark indices opened the day higher ahead of the Reserve Bank of India Monetary Policy due later on Tuesday, where the country's central bank was widely expected to hold interest rates steady.

The Sensex was trading with gains of 42 points, while the Nifty gained 8 points in trade.

Most of Asia was also higher, despite weakish data from the US, where the Job numbers were much lower than expected.

Banking stocks were flat ahead of the RBI meet. ICICI Bank, State Bank of India were mildly positive.

Other rate sensitives like auto and real estate stocks were also trading flat. Shares in JP Group companies were trading lower after reports that the group has defaulted on loan payment worth Rs 4460 crores.

Coal India was trading lower, despite reports that the board of the company may meet later this week to consider a buyback of shares.

This was after another PSU company, NMDC had said that its board would meet to consider a proposal for the buyback of shares.

Reliance Industries saw some buying support after reports that the company had started its its purified terephthalic acid (PTA) plants and is ramping up production to full capacity at Dahej. The PTA plants were shut on due to increased water salinity.

Meanwhile, markets across Asia made a tentative start, though the Japanese Nikkei was lower as the Japanese Yen gained against the US dollar.

The Indian rupee opened the day strong at 65.95 to the US dollar. Check currency rates here

GoodReturns.in