Sensex Turns Flat; Rate Sensitives Subdued Ahead Of RBI Policy Review

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• published: 04 Oct 2016
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11:56 a.m.: Ajay Bodke, CEO & chief portfolio manager at Prabhudas Lilladher, says, "In our view RBI would refrain from cutting rates in its meeting today though the consumer inflation has been trending down for the last few months and is well within RBI's comfort zone of 4 per cent /-2 per cent. Ample rains after two years of drought resulting in expected bountiful kharif harvest post October-November 2016 as well as a rise in water table & strong reservoir levels across India presaging a strong rabi season would lead to further softening in CPI & food inflation allowing more leeway to the Central bank in its policy of monetary accommodation. We are expecting that rates would come down by atleast 50 basis points over the next six months. Although OPEC has announced an agreement to cut oil production to 32.5 to 33 million barrels/day from the current production of 33.4 million barrels/day after reconciling the views mainly of Iran and Saudi Arabia, there are serious doubts about the rigorous adherence to the production cuts in view of severe fiscal pressures faced by the oil exporters necessitating large pumping of oil."11:04 a.m.: Shares of Wockhardt Ltd jumped as much as 4.75 per cent to hit intraday high of Rs. 937 after the US drug regulator excluded one of its drugs from import alert it had issued to the company in August. Mumbai-based drug maker post market hours on Monday said that the US Food and Drug Administration (FDA) has excluded Ceftriazone Sodium from import alert issued earlier in August against its active pharmaceutical ingredient manufacturing facility in Ankleshwar. 10:14 a.m.: Stock markets came off the intraday high levels onthe back of selling pressure in select banking, realty and capital goods stocks. Sensex was up 67 points at 28,310 and Nifty was up 18 points at 8,756. 9:51 a.m.: Banking stocks edge lower ahead of Reserve Bank of India's monetary policy review. Bank Nifty slips 0.15 per cent 23 points to 19,566; IndusInd Bank, Punjab National Bank, Bank of Baroda, Axis Bank, ICICI Bank, Canara Bank and Bank of India were among the laggards.