Mumbai, Sep 30 (IANS) A benchmark index of Indian equities markets was trading flat in the pre-afternoon trade session Tuesday, as the Reserve Bank decided to keep key interest rates unchanged in its fourth bi-monthly policy review.
Interest sensitive stocks like banks plummeted. Other sectors like information technology (IT), metal and technology, entertainment and media (teck) also declined. However, healthy buying was observed in healthcare, consumer durable and automobile sectors.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 26,610.71 points, was trading at 26,645.71 points (11.40 a.m.), up 48.60 points or 0.18 percent from the previous day’s close at 26,597.11 points.
The Sensex touched a high of 26,659.12 points and a low of 26,547.44 points in the intraday.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) too was trading flat. It was trading at 25.80 points or 0.32 percent up at 7,984.70 points.
The apex bank kept the repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, has been left unchanged at 8 percent.
The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent.
The Cash Reserve Ratio (CRR) is left unchanged at 4 percent. The marginal standing facility rate and the Bank Rate is also kept unchanged at 9 percent.
The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, has been maintained to 22.0 percent of their net demand and time liabilities (NDTL).
The central bank’s action is on the expected lines as most analysts predicted a status quo, considering the macro-economic situation and current data.
Sensex trades flat, as RBI keeps interest rates unchanged
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