Most economists and watchers feel the MPC is likely to keep rates unchanged, and maintain its ‘accommodative’ stance as it awaits cues on the inflation front.
The Indian stock market continues trading in the green as the RBI in its MPC outcome has keep interest rates unchanged with ‘accommodative’ stance.
Sensex is up 368.92 points or 0.62% at 60046.75, and the Nifty up 111.30 points or 0.63% at 17901.60.
The Monetary Policy Committee (MPC) has decided to maintain status quo and keep the repo rate unchanged at 4%. The reverse repo rate will continue to be 3.35 percent. Reserve Bank of India (RBI) Governor Shaktikanta Das said the policy stance continues to be “accommodative”.The central bank was widely expected to keep the interest rates steady.
India in a much better place today than at the time of the last MPC meeting. Growth impulses are strengthening, inflation trajectory more favourable than expected, said RBI Governor Shaktikanta Das.
Rate-sensitive sectors such as auto and bank are trading in the green while the realty index has extended loses and is down over a percent at 10:19 hours.
Among the auto names, Tata Motors share price added over 2 percent followed by MRF, Eicher Motors, Mahindra & Mahindra, TVS Motor and Bajaj Auto.
From the banking space, Bandhan Bank and AU SMall Finance Bank added 2 percent each followed by Axis Bank, ICICI Bank, Kotak Mahindra Bank and RBL Bank.
On the other hand, realty stocks are under pressure with Godrej Properties and Sobha down 2-3 percent each followed by Phoenix Mills, DLF, Oberoi Realty and Brigade Enterprises.
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