Markets Volatile, RBI Keeps Repo Rate Unchanged

The Indian markets have seen a flat opening today. Both the BSE Sensex and Nifty are down by 0.1% at this time.

Meanwhile, the RBI has kept the key rates unchanged. However, it has reduced the SLR by 100 bps.

Most of the Asian indices have held on to their morning gains. Hang Seng has surged by 0.85%, while the Nikkei up by 0.75%. Shanghai, though, is flat at this time.

Of the sectoral indices, FMCG and HC are both up by 0.5%. The interest rate-sensitive Auto and Bankex indices have turned negative after having surged on rate cut expectations yesterday. Metals, Teck, CG and Power are in negatives.

From the Sensex stocks, Cipla is the top gainer, up by 2.4%. Wipro is up 1.80%, cutting through yesterday’s negativity. ONGC, HDFC, ITC and Coal India are all trading with gains of 0.5%. The shares of Bharti Airtel have tanked 2.8% on the news that it is lining up an equity issue to the public. Hero MotoCorp, Tata Steel, Dr Reddy’s Labs have also lost over 1% each at this time.

Among the other shares, Essar Oil is up nearly 5%. Sun TV, Tata Global, Financial Tech, Pipapav Defence etc. are each up by over 2%. Cadila Healthcare is up over 1% following USFDA approval for one of its drugs. Suzlon Energy, which redeemed FCCBs worth USD 360 million yesterday, is down on profit booking. The shares of HCL are also marginally up on news that HCL AXON has accomplished large-scale implementation of SAP Solutions at Norfolk Southern. Hexaware is down after the company announced its Q1 results.

The advance-decline ratio is currently mixed, with one share declining for every one share advancing.

Ahead today, we expect the markets to remain volatile after RBI has announced keeping the rates unchanged. This has further raised concerns on inflation.