Indian shares are moving sideways in early trading on Tuesday ahead of RBI's rate-setting meeting. Rate-sensitive auto, realty and banking stocks are posting marginal losses before the RBI's monetary policy meet due in a few minutes from now. Most economists expect a status quo on key policy rates after the RBI cited persisting inflation as a major challenge for monetary policy.
Reports that Home Minister P Chidambaram will be made the Finance Minister in a Cabinet reshuffle this weekend and firm Asian cues seem to be helping to limit the downside to some extent.
Asian markets are trading mostly higher on speculation the Federal Reserve and the European Central Bank may unveil stimulus measures this week, although Germany repeated its opposition to ECB bond buying.
The benchmark BSE Sensex is largely unchanged at 17,143, while the broader Nifty index is down 5 points or 0.12 percent at 5,194. Second-line stocks are little changed and the market breadth is slightly positive, with gaining shares outpacing declining ones by 938 shares to 855 shares on the BSE.
Shree Cement is declining 0.9 percent after the Competition Commission of India found the company guilty of cartelisation and imposed a penalty of Rs. 397.51 crore. Ambuja Cement is moving down 0.4 percent, while ACC is up 0.4 percent and UltraTech is gaining 0.4 percent.
Bharti Airtel is losing 2.3 percent on reports it is exploring issuing new shares to the public or institutional investors to pare debt. Rival Reliance Communication is declining 1.1 percent and Idea Cellular is moving down 0.8 percent. Greaves Cotton is losing a percent on disappointing earnings results.
Cipla is rising 2.2 percent, while Jaiprakash Associates is losing a percent ahead of their Q1 results today. Coal India is adding half a percent ahead of a board meet today to discuss the issues related to signing of the fuel supply agreements with power producers.
JK Tyre & Industries is climbing 4 percent after reports said the company is mulling acquiring rubber plantations in South East Asia.
Indian shares rose sharply for a second consecutive session on Monday after European leaders signalled their readiness to curb the region's debt crisis. The benchmark 30-share BSE Sensex ended the day up 305 points or 1.81 percent at 17,144, while the broader Nifty index rose by about 100 points or 1.96 percent to 5,200.
by RTT Staff Writer
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