RBI MPC member predicts ‘less severe’ high food inflation
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member highlighted that going ahead, as India develops, the problem of high food inflation would be "less severe".
Key Indian equity indices on Wednesday traded in the red during the mid-afternoon session as investors remained cautious ahead of the outcome of the Reserve Bank of India’s (RBI) two-day policy review meet due later during the day.
Besides, negative Asian markets, coupled with heavy selling pressure in metals, banking and auto stocks, kept investors’ sentiments subdued.
Around 1 p.m., the wider Nifty50 of the National Stock Exchange (NSE) traded lower by 50.40 points or 0.50 per cent at 10,067.85 points.
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The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,798.50 points, traded at 32,678.35 points — down 124.09 points or 0.38 per cent — from its previous close.
The Sensex touched a high of 32,804.75 points and a low of 32,621.10 during the intra-day trade so far.
The BSE market breadth was bearish — 1,320 declines and 1,134 advances.
“Indian markets took a cue from the Asian indices trading flat-to-negative and opened lower,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“All eyes now await the RBI policy decision to be taken in the afternoon. The central bank looks set to keep its policy rate on hold after inflation accelerated to a seven-month high and stronger economic growth reduced the need for stimulus,” he added.
On Tuesday, the equity indices recovered from their day’s lows to close with marginal losses which were trimmed by good buying in stocks of banking majors like State Bank of India and Kotak Bank, and index heavyweights like Reliance Industries.
The NSE Nifty50 edged lower by 9.50 points or 0.09 per cent to close at 10,118.25 points, while the BSE Sensex closed at 32,802.44 points — down 67.28 points or 0.20 per cent.
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