03 May 2011

Nifty below 5700 ahead of RBI policy meet

Indian equity benchmarks were down in the opening trade amid a choppy trade, especially ahead of Reserve Bank of India's policy meet today at around 11 am. The Nifty opened at sub 5700 level, dragged down by financial, FMCG and select auto companies' shares.

A CNBC-TV18 poll indicates that RBI is likely to raise rates by 25 basis points. But it is a deeply divided market.

RBI should definitely go in for a 50 bps hike. It will send out a very strong signal. "But don't think it is going to happen. They will probably increase rates only by 25 bps, which market may take as positive in the short-term".

Among frontliners, ONGC, ICICI Bank, HDFC Bank, M&M, Bajaj Auto, DLF, PNB, Tata Motors, ACC, Jaiprakash Associates, HDFC and SBI were pulling the markets down.

However, Hero Honda, BHEL, SAIL and Ranbaxy Labs were on buyers' radar.

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