Beyond expectations, the Reserve Bank of India has kept the repo rate (the rate at which the banks borrow from the central bank), unchanged at 6.25% against a widely-anticipated cut of 25 – 50 basis points, while reviewing the Monetary Policy today. It is the first policy since the government’s demonetization drive in November. The reverse repo rate under the LAF remains unchanged at 5.75 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent.
Equity benchmarks reversed the gains in the last hours of trade. The 30-share index Sensex declined 155 points at 26236 while Nifty lost 41 points at 8102. Maximum sectors in the broader market ended up in the negative zone. BSE SmallCap lost 62 points at 12101, BSE Midcap dropped 19 points at 12324 while Nifty Midcap slipped down 62 points at 14621.
Gainers: Eicher Motors, BPCL, Adani Ports, HDFC, Idea Cellular
Losers: Sun Pharma, Bank of Baroda, Tech Mahindra, Axis Bank, Tata Steel
Stock Tips For Tomorrow
Buy Engineers India above 301 with Target 301, 302, 303 and StopLoss 296.
Buy Bata above 415 with Target 420, 422, 424 and StopLoss 414.