Starting on a positive note, by 10:22 am, the S&P BSE Sensex gained 73 points at 28,317 and the Nifty50 rose 21 points at 8,760, amidst the anticipation of the RBI's monetary policy review today. Major gainers that supported the key indices were ONGC, GAIL, Hero MotoCorp, Adani Ports, RIL, Cipla and Tata Motors. The rupee also traded higher, at 66.55 against the American dollar on Tuesday.
The latest macroeconomic numbers - CPI based inflation easing to 5.05 per cent in august from 6.07 per cent in July on the back of good monsoon rains. However, a dip in the Industrial production Index in July by 2.4 per cent may propel towards a rate cut. A possibility of US Fed rate hike in December may propel the RBI to make rate changes in this policy as it may trigger investment outflow from the emerging markets.
Bank of Maharashtra Managing Director and Chief Executive R P Marathe said he doesn't think the Reserve Bank is going to change rates as inflation readings - based on both WPI and CPI - have not softened much, according to PTI.
The latest monetary policy meeting will be the first meet where the interest rate decision is taken by the newly constituted MPC. Urjit Patel, the RBI governor, will be one among the six-member of the committee. The fourth bi-monthly monetary policy review would be made public at 2:30 pm on Tuesday after the MPC meeting.
BW Reporters
Naina Sood is a Economics graduate and has done her post graduation in International economics and Trade. She has deep interests in Indian economy and reforms
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