12:20 pm Rate cut likely?:
The newly-constituted Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel is unlikely to lower rates at its maiden policy review on Tuesday as it awaits more supporting data on inflation, experts said.
The monetary policy review on October 4 will be the first by the six-member MPC as well as Governor Patel, who as the deputy governor had described the RBI as an owl when it comes to inflation management.
“I don’t think the Reserve Bank is going to change rates as inflation — both WPI and CPI — have not softened much,” Bank of Maharashtra Managing Director and Chief Executive R P Marathe told PTI.
August retail inflation eased to a five-month low of 5.05 percent but WPI inflation climbed to a two-year high of 3.74 percent.
Before the dip in August, both the retail as well as wholesale price indices were on a continuous upward spiral.
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12:00 pm Market Check
Bulls continued to keep control over Dalal Street in noon trade on short covering in auto, banks, infra and oil stocks. The broader markets outperformed equity benchmarks with the BSE Midcap and Smallcap indices rising more than 1.5 percent.
The 30-share BSE Sensex was up 276.42 points or 0.99 percent at 28142.38 and the 50-share NSE Nifty rallied 93.65 points or 1.09 percent to 8704.80. About four shares advanced for every share falling on the BSE.
India is likely to see double-digit earnings growth in FY17 and FY18, feels Mahesh Nandurkar of CLSA. Tailwinds in the next couple of quarters from reasonably good monsoons and low base effect in the banking space should help in 12-14 percent earnings growth in FY17, he tells CNBC-TV18.
As a base case, he believes liquidity will continue to keep up the market run.
Maruti Suzuki shares hit a record high of Rs 5,707.25, rising more than 4 percent intraday after strong sales data in September followed by M&M, Tata Motors, Hero Motocorp and Bajaj Auto.