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.

FY12 growth to be good

On the eve of its annual Credit Policy, the Reserve Bank of India has released its macroeconomic report.

In its report, the central bank has said that the macroeconomic outlook for fiscal year 2012 remains favourable aided by predicted normal monsoon, demand conditions and positive lead indicators for services. "GDP growth during 2010-11 reverted to its recent trend, aided by a rebound in agricultural growth. Fore more Read full story

Bankers expect 25-bps hike tomorrow

The Reserve Bank of India is treading a fine line while trying to cope with growing market expectations of a 25 basis points hike in its credit policy which will be announced on Tuesday.

"We expect RBI to raise rates by 100 basis points by October 2011, with a 25 bps hike on Tuesday," Indranil Sengupta said. Also, the bank could tighten provisioning norms for bank loans to real estate and might accept some part of the Deepak Mohanty report, according to him. (Read what other bankers are expecting)

Nifty volatile

Indian equity benchmarks continued to remain in a consolidation mode on first day of May. Financial, auto and realty companies' shares were on sellers' radar ahead of RBI policy meet tomorrow. L&T too was down on the back of same reason.

However, technology, healthcare and FMCG companies' shares were quite supportive. Among frontliners, L&T, Infosys, Reliance Communications, Axis Bank, Kotak Mahindra Bank, Jaiprakash Associates, BHEL, Bajaj Auto, M&M and ONGC were witnessing buying interest.

However, Reliance Industries, Ambuja Cements, IDFC, SAIL, Sesa Goa, Sterlite Industries, PNB and Hindalco were putting pressure on markets. At 9:18 hours IST, the 30-share BSE Sensex was trading at 19,175, up 39 points and the 50-share NSE Nifty rose just 0.5 points to 5,750.

Al Qaeda leader bin Laden dead

Osama bin Laden is dead and his body has been recovered by US authorities, US officials said on Monday morning.

President Barack Obama was to make the announcement shortly that after searching in vain for bin Laden since he disappeared in Afghanistan in late 2001, the Saudi-born extremist is dead.

It is a major accomplishment for Obama and his national security team. Obama's predecessor, George W Bush, had repeatedly vowed to bring to justice the mastermind of the September 11, 2001, attacks on New York and Washington, but never did before leaving office in early 2009.

US officials said that after searching in vain for the al Qaeda leader since he disappeared in Afghanistan in late 2001, the Saudi-born extremist is dead and his body recovered.

Having the body may help convince any doubters that bin Laden is really dead.

He had been the subject of a search since he eluded US soldiers and Afghan militia forces in a large-scale assault on the Tora Bora mountains in 2001. The trail quickly went cold after he disappeared and many intelligence officials believed he had been hiding in Pakistan.

While in hiding, bin Laden had taunted the West and advocated his militant Islamist views in videotapes spirited from his hideaway.

Besides September 11, Washington has also linked bin Laden to a string of attacks - including the 1998 bombings of American embassies in Kenya and Tanzania and the 2000 bombing of the warship USS Cole in Yemen.