RBI Meet Today: Auto shares were witnessing buying interest.
Nifty Auto index rose 0.6%.Rate-sensitive banking, financial services and auto shares were trading higher while realty shares were flat ahead of the Reserve Bank of India's monetary policy decision due later in the day.
Many economists expect the six-member RBI Monetary Policy Committee, chaired by the central bank Governor Shaktikanta Das, to once again lower the key interest rates, given the consumer inflation reading remaining well within the RBI's medium-term goal for 13 months in a row.Interest rate-sensitive banking, financial services and auto shares were trading higher ahead of the RBI's decision on interest rates while the realty shares were trading on a flat note.Gauge of auto shares on the NSE - Nifty Auto index rose 0.61 per cent followed by gain of 0.6 and 0.5 per cent each in Nifty Financial Services and Nifty Bank indexes respectively.Meanwhile, the gauge of realty shares was trading on a flat note.IndusInd Bank was top gainer in the 12-member Nifty Bank index.
The stock rose 2.4 per cent to Rs 1,285.80.
RBL Bank, State Bank of India, Yes Bank, Bank of Baroda and Axis Bank were also up between 0.1-1.3 per cent each.In the auto space, Hero MotoCorp was top gainer followed by Apollo Tyres, Bharat Forge, Motherson Sumi, Bajaj Auto and TVS Motor.The RBI is predicted to lower its key lending rate by at least 25 basis points to 5.15 per cent, which would take cumulative cuts so far this year to 135 bps, according to news agency Reuters.In the August review, the MPC reduced the repo rate by 35 basis points, following three bi-monthly reductions of 25 basis points each.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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