RBI keeps repo rate unchanged at 6%, maintains neutral stance

Mae Love
December 7, 2017

All sectoral indices ended in red barring IT.

Shares of major banks, particularly state-owned ones, fell ahead of the RBI's monetary policy statement due later today.

Other Asian markets closed lower.

Earlier, RBI Governor Urjit Patel along with six-member Monetary Policy Committee (MPC) on Wednesday maintained status quo for the second time in a row during fifth-bi-monthly monetary policy of FY18. First, the moderation in core inflation (inflation excluding food and fuel) observed in Q1 2017-18 has reversed and there is a risk that this upward trajectory may continue in the near-term. Yields on the longer dated securities have moved up by around 30-40 bps with 10-year G-Sec yield moving up by 35 bps since the October RBI monetary policy meeting.

Jayant Manglik President Retail Sales at Religare Securities said selective buy-on-dips is the preferred strategy at the current juncture.

Consequently, the reverse repo rate under the LAF remains at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25%.

"The policy guidance is in line with market expectations reflected in spike in 10-year bond yields beyond 7 percent mark".

Neil Patrick Harris Fills In for Jimmy Kimmel & Delivers Opening Monologue
The baby, Billy Kimmel, had been scheduled to have the surgery in October, but it was postponed because of household colds. Neil Patrick Harris filled in for Jimmy Kimmel last night on his show and had some good news to share with fans.

Destiny 2 - All Eater of Worlds Armor Ornaments
What we do have right now are galleries of the Eater of Worlds ornamented armor that can be seen at the raid vendor right now. Guardians will be exploring new locations and squaring off against a hulking boss, plus hoovering up fresh loot.

Jury rules Rohinie Bisesar unfit to stand trial in PATH stabbing
The jury at the fitness hearing found Bisesar unfit to stand trial after a short deliberation on Tuesday. Bisesar will likely be given anti-psychotic and anti-anxiety medications while at CAMH, the court heard.

Growth in gross domestic product picked up to 6.3 per cent in July-September from a year ago, halting five quarters of deceleration as manufacturing rebounded. That's also contributing to a surge in prices, together with rising global oil costs and higher wages for government employees.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.

European markets too saw a weak trend.

Back home, the broader markets also traded in line with benchmarks, with the Nifty Midcap falling a percent. Paris CAC fell 0.29% and Frankfurt's DAX shed 0.13%. Metal index also lost almost 2 percent on correction in commodities prices.

Vedanta, Eicher Motors, Infratel, Hindalco and Bosch fell 2-4 percent in the Nifty pack, while Maruti Suzuki, Tech Mahindra and Reliance Industries climbed 1-2 percent. Both the indices lost above 0.60 per cent during the day.

In broader space, Canara Bank, UCO Bank, OBC, LIC Housing Finance, Voltas, JSW Energy, Jain Irrigation, NMDC, SAIL, MMTC, Manappuram Finance, Ajanta Pharma, Radico Khaitan and United Breweries down 1-5 percent while Dish TV, Bata, KPIT Technologies and PC Jeweller gained 1-5 percent.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER