Indian Indices Start Week Strong, RBI Decides Interest Rates, And Top Stocks In Action

Yesterday, share markets in India witnessed positive momentum throughout the day and ended strongly in green. The BSE Sensex closed higher by 214 points to end at 31,497 while the broader NSE Nifty ended the day up by 71 point to close at 9,860.

Among BSE sector indices, consumer durables index rose the most by 2.2%, followed by oil and gas stocks 1.3s%. Tata Motors, Asian Paints, and Reliance Industries were among the top gainers.

Top Stocks in Action Today

Reliance Communications (RCom) is likely to witness action today after the company called off the merger of its wireless services business with Aircel Ltd, citing regulatory delays and opposition from some creditors, in a development that will further impede its efforts to pare its huge debt.

RCom said it is now looking at alternative ways to reduce its debt, including sale of real estate assets and “optimization of spectrum”.

Godrej Industries share price is likely to be in focus today after its unit, Godrej Agrovet Ltd set a price range of Rs 450-460 a share for its initial public offering (IPO) to raise up to Rs 11.6 billion.

The animal-feed producer is selling new shares worth up to Rs 29.2 billion in the IPO, while its main shareholder Godrej Industries is selling secondary shares of up to Rs 3 billion.

Banking stocks will be in focus today as the RBI’s Monetary Policy committee (MPC), is set to conclude its bi-monthly meeting today. The MPC’s decision on interest rates will be a key factor to watch out for.

RBI’s Interest Rates Decision Today

The RBI’s MPC’s two-day meeting is set to conclude today, with a decision on key interest rates in the offing.

The fourth bi-monthly monetary policy statement for 2017-18, to be released today, is being keenly awaited by all stakeholders – especially the industry which has been demanding for lower interest rates.

Various bankers, including the SBI, however, are of the view that the Reserve Bank of India (RBI) would maintain status quo as inflation has risen. A SBI report said that the RBI is likely to maintain status quo on key lending rate at today’s policy review as it is “stuck in a conundrum” of low growth, mild inflation and global uncertainties.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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